Rep. Lawrence "Larry" Walsh, Jr.

Filed: 11/2/2023

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1 AMENDMENT TO SENATE BILL 1699

2 AMENDMENT NO. ______. Amend Senate Bill 1699, AS AMENDED,

3 by replacing everything after the enacting clause with the

4 following:

5 "Section 5. The Freedom of Information Act is amended by

6 changing Section 7.5 as follows:

7 (5 ILCS 140/7.5)

8 Sec. 7.5. Statutory exemptions. To the extent provided for

9 by the statutes referenced below, the following shall be

10 exempt from inspection and copying:

11 (a) All information determined to be confidential

12 under Section 4002 of the Technology Advancement and

13 Development Act.

14 (b) Library circulation and order records identifying

15 library users with specific materials under the Library

16 Records Confidentiality Act.

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1 (c) Applications, related documents, and medical

2 records received by the Experimental Organ Transplantation

3 Procedures Board and any and all documents or other

4 records prepared by the Experimental Organ Transplantation

5 Procedures Board or its staff relating to applications it

6 has received.

7 (d) Information and records held by the Department of

8 Public Health and its authorized representatives relating

9 to known or suspected cases of sexually transmissible

10 disease or any information the disclosure of which is

11 restricted under the Illinois Sexually Transmissible

12 Disease Control Act.

13 (e) Information the disclosure of which is exempted

14 under Section 30 of the Radon Industry Licensing Act.

15 (f) Firm performance evaluations under Section 55 of

16 the Architectural, Engineering, and Land Surveying

17 Qualifications Based Selection Act.

18 (g) Information the disclosure of which is restricted

19 and exempted under Section 50 of the Illinois Prepaid

20 Tuition Act.

21 (h) Information the disclosure of which is exempted

22 under the State Officials and Employees Ethics Act, and

23 records of any lawfully created State or local inspector

24 general's office that would be exempt if created or

25 obtained by an Executive Inspector General's office under

26 that Act.

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1 (i) Information contained in a local emergency energy

2 plan submitted to a municipality in accordance with a

3 local emergency energy plan ordinance that is adopted

4 under Section 11-21.5-5 of the Illinois Municipal Code.

5 (j) Information and data concerning the distribution

6 of surcharge moneys collected and remitted by carriers

7 under the Emergency Telephone System Act.

8 (k) Law enforcement officer identification information

9 or driver identification information compiled by a law

10 enforcement agency or the Department of Transportation

11 under Section 11-212 of the Illinois Vehicle Code.

12 (l) Records and information provided to a residential

13 health care facility resident sexual assault and death

14 review team or the Executive Council under the Abuse

15 Prevention Review Team Act.

16 (m) Information provided to the predatory lending

17 database created pursuant to Article 3 of the Residential

18 Real Property Disclosure Act, except to the extent

19 authorized under that Article.

20 (n) Defense budgets and petitions for certification of

21 compensation and expenses for court appointed trial

22 counsel as provided under Sections 10 and 15 of the

23 Capital Crimes Litigation Act. This subsection (n) shall

24 apply until the conclusion of the trial of the case, even

25 if the prosecution chooses not to pursue the death penalty

26 prior to trial or sentencing.

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1 (o) Information that is prohibited from being

2 disclosed under Section 4 of the Illinois Health and

3 Hazardous Substances Registry Act.

4 (p) Security portions of system safety program plans,

5 investigation reports, surveys, schedules, lists, data, or

6 information compiled, collected, or prepared by or for the

7 Department of Transportation under Sections 2705-300 and

8 2705-616 of the Department of Transportation Law of the

9 Civil Administrative Code of Illinois, the Regional

10 Transportation Authority under Section 2.11 of the

11 Regional Transportation Authority Act, or the St. Clair

12 County Transit District under the Bi-State Transit Safety

13 Act.

14 (q) Information prohibited from being disclosed by the

15 Personnel Record Review Act.

16 (r) Information prohibited from being disclosed by the

17 Illinois School Student Records Act.

18 (s) Information the disclosure of which is restricted

19 under Section 5-108 of the Public Utilities Act.

20 (t) All identified or deidentified health information

21 in the form of health data or medical records contained

22 in, stored in, submitted to, transferred by, or released

23 from the Illinois Health Information Exchange, and

24 identified or deidentified health information in the form

25 of health data and medical records of the Illinois Health

26 Information Exchange in the possession of the Illinois

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1 Health Information Exchange Office due to its

2 administration of the Illinois Health Information

3 Exchange. The terms "identified" and "deidentified" shall

4 be given the same meaning as in the Health Insurance

5 Portability and Accountability Act of 1996, Public Law

6 104-191, or any subsequent amendments thereto, and any

7 regulations promulgated thereunder.

8 (u) Records and information provided to an independent

9 team of experts under the Developmental Disability and

10 Mental Health Safety Act (also known as Brian's Law).

11 (v) Names and information of people who have applied

12 for or received Firearm Owner's Identification Cards under

13 the Firearm Owners Identification Card Act or applied for

14 or received a concealed carry license under the Firearm

15 Concealed Carry Act, unless otherwise authorized by the

16 Firearm Concealed Carry Act; and databases under the

17 Firearm Concealed Carry Act, records of the Concealed

18 Carry Licensing Review Board under the Firearm Concealed

19 Carry Act, and law enforcement agency objections under the

20 Firearm Concealed Carry Act.

21 (v-5) Records of the Firearm Owner's Identification

22 Card Review Board that are exempted from disclosure under

23 Section 10 of the Firearm Owners Identification Card Act.

24 (w) Personally identifiable information which is

25 exempted from disclosure under subsection (g) of Section

26 19.1 of the Toll Highway Act.

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1 (x) Information which is exempted from disclosure

2 under Section 5-1014.3 of the Counties Code or Section

3 8-11-21 of the Illinois Municipal Code.

4 (y) Confidential information under the Adult

5 Protective Services Act and its predecessor enabling

6 statute, the Elder Abuse and Neglect Act, including

7 information about the identity and administrative finding

8 against any caregiver of a verified and substantiated

9 decision of abuse, neglect, or financial exploitation of

10 an eligible adult maintained in the Registry established

11 under Section 7.5 of the Adult Protective Services Act.

12 (z) Records and information provided to a fatality

13 review team or the Illinois Fatality Review Team Advisory

14 Council under Section 15 of the Adult Protective Services

15 Act.

16 (aa) Information which is exempted from disclosure

17 under Section 2.37 of the Wildlife Code.

18 (bb) Information which is or was prohibited from

19 disclosure by the Juvenile Court Act of 1987.

20 (cc) Recordings made under the Law Enforcement

21 Officer-Worn Body Camera Act, except to the extent

22 authorized under that Act.

23 (dd) Information that is prohibited from being

24 disclosed under Section 45 of the Condominium and Common

25 Interest Community Ombudsperson Act.

26 (ee) Information that is exempted from disclosure

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1 under Section 30.1 of the Pharmacy Practice Act.

2 (ff) Information that is exempted from disclosure

3 under the Revised Uniform Unclaimed Property Act.

4 (gg) Information that is prohibited from being

5 disclosed under Section 7-603.5 of the Illinois Vehicle

6 Code.

7 (hh) Records that are exempt from disclosure under

8 Section 1A-16.7 of the Election Code.

9 (ii) Information which is exempted from disclosure

10 under Section 2505-800 of the Department of Revenue Law of

11 the Civil Administrative Code of Illinois.

12 (jj) Information and reports that are required to be

13 submitted to the Department of Labor by registering day

14 and temporary labor service agencies but are exempt from

15 disclosure under subsection (a-1) of Section 45 of the Day

16 and Temporary Labor Services Act.

17 (kk) Information prohibited from disclosure under the

18 Seizure and Forfeiture Reporting Act.

19 (ll) Information the disclosure of which is restricted

20 and exempted under Section 5-30.8 of the Illinois Public

21 Aid Code.

22 (mm) Records that are exempt from disclosure under

23 Section 4.2 of the Crime Victims Compensation Act.

24 (nn) Information that is exempt from disclosure under

25 Section 70 of the Higher Education Student Assistance Act.

26 (oo) Communications, notes, records, and reports

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1 arising out of a peer support counseling session

2 prohibited from disclosure under the First Responders

3 Suicide Prevention Act.

4 (pp) Names and all identifying information relating to

5 an employee of an emergency services provider or law

6 enforcement agency under the First Responders Suicide

7 Prevention Act.

8 (qq) Information and records held by the Department of

9 Public Health and its authorized representatives collected

10 under the Reproductive Health Act.

11 (rr) Information that is exempt from disclosure under

12 the Cannabis Regulation and Tax Act.

13 (ss) Data reported by an employer to the Department of

14 Human Rights pursuant to Section 2-108 of the Illinois

15 Human Rights Act.

16 (tt) Recordings made under the Children's Advocacy

17 Center Act, except to the extent authorized under that

18 Act.

19 (uu) Information that is exempt from disclosure under

20 Section 50 of the Sexual Assault Evidence Submission Act.

21 (vv) Information that is exempt from disclosure under

22 subsections (f) and (j) of Section 5-36 of the Illinois

23 Public Aid Code.

24 (ww) Information that is exempt from disclosure under

25 Section 16.8 of the State Treasurer Act.

26 (xx) Information that is exempt from disclosure or

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1 information that shall not be made public under the

2 Illinois Insurance Code.

3 (yy) Information prohibited from being disclosed under

4 the Illinois Educational Labor Relations Act.

5 (zz) Information prohibited from being disclosed under

6 the Illinois Public Labor Relations Act.

7 (aaa) Information prohibited from being disclosed

8 under Section 1-167 of the Illinois Pension Code.

9 (bbb) Information that is prohibited from disclosure

10 by the Illinois Police Training Act and the Illinois State

11 Police Act.

12 (ccc) Records exempt from disclosure under Section

13 2605-304 of the Illinois State Police Law of the Civil

14 Administrative Code of Illinois.

15 (ddd) Information prohibited from being disclosed

16 under Section 35 of the Address Confidentiality for

17 Victims of Domestic Violence, Sexual Assault, Human

18 Trafficking, or Stalking Act.

19 (eee) Information prohibited from being disclosed

20 under subsection (b) of Section 75 of the Domestic

21 Violence Fatality Review Act.

22 (fff) Images from cameras under the Expressway Camera

23 Act. This subsection (fff) is inoperative on and after

24 July 1, 2023.

25 (ggg) Information prohibited from disclosure under

26 paragraph (3) of subsection (a) of Section 14 of the Nurse

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1 Agency Licensing Act.

2 (hhh) Information submitted to the Illinois ~~Department~~

3 ~~of~~ State Police in an affidavit or application for an

4 assault weapon endorsement, assault weapon attachment

5 endorsement, .50 caliber rifle endorsement, or .50 caliber

6 cartridge endorsement under the Firearm Owners

7 Identification Card Act.

8 (iii) Information prohibited from being disclosed

9 under subsection (e) of Section 1-129 of the Illinois

10 Power Agency Act.

11 (Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;

12 101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.

13 1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,

14 eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;

15 101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.

16 1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,

17 eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;

18 102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.

19 7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised

20 2-13-23.)

21 Section 10. The Illinois Power Agency Act is amended by

22 changing Section 1-75 and adding Section 1-129 as follows:

23 (20 ILCS 3855/1-75)

24 (Text of Section before amendment by P.A. 103-380)

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1 Sec. 1-75. Planning and Procurement Bureau. The Planning

2 and Procurement Bureau has the following duties and

3 responsibilities:

4 (a) The Planning and Procurement Bureau shall each year,

5 beginning in 2008, develop procurement plans and conduct

6 competitive procurement processes in accordance with the

7 requirements of Section 16-111.5 of the Public Utilities Act

8 for the eligible retail customers of electric utilities that

9 on December 31, 2005 provided electric service to at least

10 100,000 customers in Illinois. Beginning with the delivery

11 year commencing on June 1, 2017, the Planning and Procurement

12 Bureau shall develop plans and processes for the procurement

13 of zero emission credits from zero emission facilities in

14 accordance with the requirements of subsection (d-5) of this

15 Section. Beginning on the effective date of this amendatory

16 Act of the 102nd General Assembly, the Planning and

17 Procurement Bureau shall develop plans and processes for the

18 procurement of carbon mitigation credits from carbon-free

19 energy resources in accordance with the requirements of

20 subsection (d-10) of this Section. The Planning and

21 Procurement Bureau shall also develop procurement plans and

22 conduct competitive procurement processes in accordance with

23 the requirements of Section 16-111.5 of the Public Utilities

24 Act for the eligible retail customers of small

25 multi-jurisdictional electric utilities that (i) on December

26 31, 2005 served less than 100,000 customers in Illinois and

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1 (ii) request a procurement plan for their Illinois

2 jurisdictional load. This Section shall not apply to a small

3 multi-jurisdictional utility until such time as a small

4 multi-jurisdictional utility requests the Agency to prepare a

5 procurement plan for their Illinois jurisdictional load. For

6 the purposes of this Section, the term "eligible retail

7 customers" has the same definition as found in Section

8 16-111.5(a) of the Public Utilities Act.

9 Beginning with the plan or plans to be implemented in the

10 2017 delivery year, the Agency shall no longer include the

11 procurement of renewable energy resources in the annual

12 procurement plans required by this subsection (a), except as

13 provided in subsection (q) of Section 16-111.5 of the Public

14 Utilities Act, and shall instead develop a long-term renewable

15 resources procurement plan in accordance with subsection (c)

16 of this Section and Section 16-111.5 of the Public Utilities

17 Act.

18 In accordance with subsection (c-5) of this Section, the

19 Planning and Procurement Bureau shall oversee the procurement

20 by electric utilities that served more than 300,000 retail

21 customers in this State as of January 1, 2019 of renewable

22 energy credits from new utility-scale solar projects to be

23 installed, along with energy storage facilities, at or

24 adjacent to the sites of electric generating facilities that,

25 as of January 1, 2016, burned coal as their primary fuel

26 source.

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1 (1) The Agency shall each year, beginning in 2008, as

2 needed, issue a request for qualifications for experts or

3 expert consulting firms to develop the procurement plans

4 in accordance with Section 16-111.5 of the Public

5 Utilities Act. In order to qualify an expert or expert

6 consulting firm must have:

7 (A) direct previous experience assembling

8 large-scale power supply plans or portfolios for

9 end-use customers;

10 (B) an advanced degree in economics, mathematics,

11 engineering, risk management, or a related area of

12 study;

13 (C) 10 years of experience in the electricity

14 sector, including managing supply risk;

15 (D) expertise in wholesale electricity market

16 rules, including those established by the Federal

17 Energy Regulatory Commission and regional transmission

18 organizations;

19 (E) expertise in credit protocols and familiarity

20 with contract protocols;

21 (F) adequate resources to perform and fulfill the

22 required functions and responsibilities; and

23 (G) the absence of a conflict of interest and

24 inappropriate bias for or against potential bidders or

25 the affected electric utilities.

26 (2) The Agency shall each year, as needed, issue a

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1 request for qualifications for a procurement administrator

2 to conduct the competitive procurement processes in

3 accordance with Section 16-111.5 of the Public Utilities

4 Act. In order to qualify an expert or expert consulting

5 firm must have:

6 (A) direct previous experience administering a

7 large-scale competitive procurement process;

8 (B) an advanced degree in economics, mathematics,

9 engineering, or a related area of study;

10 (C) 10 years of experience in the electricity

11 sector, including risk management experience;

12 (D) expertise in wholesale electricity market

13 rules, including those established by the Federal

14 Energy Regulatory Commission and regional transmission

15 organizations;

16 (E) expertise in credit and contract protocols;

17 (F) adequate resources to perform and fulfill the

18 required functions and responsibilities; and

19 (G) the absence of a conflict of interest and

20 inappropriate bias for or against potential bidders or

21 the affected electric utilities.

22 (3) The Agency shall provide affected utilities and

23 other interested parties with the lists of qualified

24 experts or expert consulting firms identified through the

25 request for qualifications processes that are under

26 consideration to develop the procurement plans and to

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1 serve as the procurement administrator. The Agency shall

2 also provide each qualified expert's or expert consulting

3 firm's response to the request for qualifications. All

4 information provided under this subparagraph shall also be

5 provided to the Commission. The Agency may provide by rule

6 for fees associated with supplying the information to

7 utilities and other interested parties. These parties

8 shall, within 5 business days, notify the Agency in

9 writing if they object to any experts or expert consulting

10 firms on the lists. Objections shall be based on:

11 (A) failure to satisfy qualification criteria;

12 (B) identification of a conflict of interest; or

13 (C) evidence of inappropriate bias for or against

14 potential bidders or the affected utilities.

15 The Agency shall remove experts or expert consulting

16 firms from the lists within 10 days if there is a

17 reasonable basis for an objection and provide the updated

18 lists to the affected utilities and other interested

19 parties. If the Agency fails to remove an expert or expert

20 consulting firm from a list, an objecting party may seek

21 review by the Commission within 5 days thereafter by

22 filing a petition, and the Commission shall render a

23 ruling on the petition within 10 days. There is no right of

24 appeal of the Commission's ruling.

25 (4) The Agency shall issue requests for proposals to

26 the qualified experts or expert consulting firms to

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1 develop a procurement plan for the affected utilities and

2 to serve as procurement administrator.

3 (5) The Agency shall select an expert or expert

4 consulting firm to develop procurement plans based on the

5 proposals submitted and shall award contracts of up to 5

6 years to those selected.

7 (6) The Agency shall select an expert or expert

8 consulting firm, with approval of the Commission, to serve

9 as procurement administrator based on the proposals

10 submitted. If the Commission rejects, within 5 days, the

11 Agency's selection, the Agency shall submit another

12 recommendation within 3 days based on the proposals

13 submitted. The Agency shall award a 5-year contract to the

14 expert or expert consulting firm so selected with

15 Commission approval.

16 (b) The experts or expert consulting firms retained by the

17 Agency shall, as appropriate, prepare procurement plans, and

18 conduct a competitive procurement process as prescribed in

19 Section 16-111.5 of the Public Utilities Act, to ensure

20 adequate, reliable, affordable, efficient, and environmentally

21 sustainable electric service at the lowest total cost over

22 time, taking into account any benefits of price stability, for

23 eligible retail customers of electric utilities that on

24 December 31, 2005 provided electric service to at least

25 100,000 customers in the State of Illinois, and for eligible

26 Illinois retail customers of small multi-jurisdictional

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1 electric utilities that (i) on December 31, 2005 served less

2 than 100,000 customers in Illinois and (ii) request a

3 procurement plan for their Illinois jurisdictional load.

4 (c) Renewable portfolio standard.

5 (1)(A) The Agency shall develop a long-term renewable

6 resources procurement plan that shall include procurement

7 programs and competitive procurement events necessary to

8 meet the goals set forth in this subsection (c). The

9 initial long-term renewable resources procurement plan

10 shall be released for comment no later than 160 days after

11 June 1, 2017 (the effective date of Public Act 99-906).

12 The Agency shall review, and may revise on an expedited

13 basis, the long-term renewable resources procurement plan

14 at least every 2 years, which shall be conducted in

15 conjunction with the procurement plan under Section

16 16-111.5 of the Public Utilities Act to the extent

17 practicable to minimize administrative expense. No later

18 than 120 days after the effective date of this amendatory

19 Act of the 102nd General Assembly, the Agency shall

20 release for comment a revision to the long-term renewable

21 resources procurement plan, updating elements of the most

22 recently approved plan as needed to comply with this

23 amendatory Act of the 102nd General Assembly, and any

24 long-term renewable resources procurement plan update

25 published by the Agency but not yet approved by the

26 Illinois Commerce Commission shall be withdrawn. The

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1 long-term renewable resources procurement plans shall be

2 subject to review and approval by the Commission under

3 Section 16-111.5 of the Public Utilities Act.

4 (B) Subject to subparagraph (F) of this paragraph (1),

5 the long-term renewable resources procurement plan shall

6 attempt to meet the goals for procurement of renewable

7 energy credits at levels of at least the following overall

8 percentages: 13% by the 2017 delivery year; increasing by

9 at least 1.5% each delivery year thereafter to at least

10 25% by the 2025 delivery year; increasing by at least 3%

11 each delivery year thereafter to at least 40% by the 2030

12 delivery year, and continuing at no less than 40% for each

13 delivery year thereafter. The Agency shall attempt to

14 procure 50% by delivery year 2040. The Agency shall

15 determine the annual increase between delivery year 2030

16 and delivery year 2040, if any, taking into account energy

17 demand, other energy resources, and other public policy

18 goals. In the event of a conflict between these goals and

19 the new wind and new photovoltaic procurement requirements

20 described in items (i) through (iii) of subparagraph (C)

21 of this paragraph (1), the long-term plan shall prioritize

22 compliance with the new wind and new photovoltaic

23 procurement requirements described in items (i) through

24 (iii) of subparagraph (C) of this paragraph (1) over the

25 annual percentage targets described in this subparagraph

26 (B). The Agency shall not comply with the annual

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1 percentage targets described in this subparagraph (B) by

2 procuring renewable energy credits that are unlikely to

3 lead to the development of new renewable resources.

4 For the delivery year beginning June 1, 2017, the

5 procurement plan shall attempt to include, subject to the

6 prioritization outlined in this subparagraph (B),

7 cost-effective renewable energy resources equal to at

8 least 13% of each utility's load for eligible retail

9 customers and 13% of the applicable portion of each

10 utility's load for retail customers who are not eligible

11 retail customers, which applicable portion shall equal 50%

12 of the utility's load for retail customers who are not

13 eligible retail customers on February 28, 2017.

14 For the delivery year beginning June 1, 2018, the

15 procurement plan shall attempt to include, subject to the

16 prioritization outlined in this subparagraph (B),

17 cost-effective renewable energy resources equal to at

18 least 14.5% of each utility's load for eligible retail

19 customers and 14.5% of the applicable portion of each

20 utility's load for retail customers who are not eligible

21 retail customers, which applicable portion shall equal 75%

22 of the utility's load for retail customers who are not

23 eligible retail customers on February 28, 2017.

24 For the delivery year beginning June 1, 2019, and for

25 each year thereafter, the procurement plans shall attempt

26 to include, subject to the prioritization outlined in this

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1 subparagraph (B), cost-effective renewable energy

2 resources equal to a minimum percentage of each utility's

3 load for all retail customers as follows: 16% by June 1,

4 2019; increasing by 1.5% each year thereafter to 25% by

5 June 1, 2025; and 25% by June 1, 2026; increasing by at

6 least 3% each delivery year thereafter to at least 40% by

7 the 2030 delivery year, and continuing at no less than 40%

8 for each delivery year thereafter. The Agency shall

9 attempt to procure 50% by delivery year 2040. The Agency

10 shall determine the annual increase between delivery year

11 2030 and delivery year 2040, if any, taking into account

12 energy demand, other energy resources, and other public

13 policy goals.

14 For each delivery year, the Agency shall first

15 recognize each utility's obligations for that delivery

16 year under existing contracts. Any renewable energy

17 credits under existing contracts, including renewable

18 energy credits as part of renewable energy resources,

19 shall be used to meet the goals set forth in this

20 subsection (c) for the delivery year.

21 (C) The long-term renewable resources procurement plan

22 described in subparagraph (A) of this paragraph (1) shall

23 include the procurement of renewable energy credits from

24 new projects in amounts equal to at least the following:

25 (i) 10,000,000 renewable energy credits delivered

26 annually by the end of the 2021 delivery year, and

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1 increasing ratably to reach 45,000,000 renewable

2 energy credits delivered annually from new wind and

3 solar projects by the end of delivery year 2030 such

4 that the goals in subparagraph (B) of this paragraph

5 (1) are met entirely by procurements of renewable

6 energy credits from new wind and photovoltaic

7 projects. Of that amount, to the extent possible, the

8 Agency shall procure 45% from wind projects and 55%

9 from photovoltaic projects. Of the amount to be

10 procured from photovoltaic projects, the Agency shall

11 procure: at least 50% from solar photovoltaic projects

12 using the program outlined in subparagraph (K) of this

13 paragraph (1) from distributed renewable energy

14 generation devices or community renewable generation

15 projects; at least 47% from utility-scale solar

16 projects; at least 3% from brownfield site

17 photovoltaic projects that are not community renewable

18 generation projects.

19 In developing the long-term renewable resources

20 procurement plan, the Agency shall consider other

21 approaches, in addition to competitive procurements,

22 that can be used to procure renewable energy credits

23 from brownfield site photovoltaic projects and thereby

24 help return blighted or contaminated land to

25 productive use while enhancing public health and the

26 well-being of Illinois residents, including those in

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1 environmental justice communities, as defined using

2 existing methodologies and findings used by the Agency

3 and its Administrator in its Illinois Solar for All

4 Program.

5 (ii) In any given delivery year, if forecasted

6 expenses are less than the maximum budget available

7 under subparagraph (E) of this paragraph (1), the

8 Agency shall continue to procure new renewable energy

9 credits until that budget is exhausted in the manner

10 outlined in item (i) of this subparagraph (C).

11 (iii) For purposes of this Section:

12 "New wind projects" means wind renewable energy

13 facilities that are energized after June 1, 2017 for

14 the delivery year commencing June 1, 2017.

15 "New photovoltaic projects" means photovoltaic

16 renewable energy facilities that are energized after

17 June 1, 2017. Photovoltaic projects developed under

18 Section 1-56 of this Act shall not apply towards the

19 new photovoltaic project requirements in this

20 subparagraph (C).

21 For purposes of calculating whether the Agency has

22 procured enough new wind and solar renewable energy

23 credits required by this subparagraph (C), renewable

24 energy facilities that have a multi-year renewable

25 energy credit delivery contract with the utility

26 through at least delivery year 2030 shall be

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1 considered new, however no renewable energy credits

2 from contracts entered into before June 1, 2021 shall

3 be used to calculate whether the Agency has procured

4 the correct proportion of new wind and new solar

5 contracts described in this subparagraph (C) for

6 delivery year 2021 and thereafter.

7 (D) Renewable energy credits shall be cost effective.

8 For purposes of this subsection (c), "cost effective"

9 means that the costs of procuring renewable energy

10 resources do not cause the limit stated in subparagraph

11 (E) of this paragraph (1) to be exceeded and, for

12 renewable energy credits procured through a competitive

13 procurement event, do not exceed benchmarks based on

14 market prices for like products in the region. For

15 purposes of this subsection (c), "like products" means

16 contracts for renewable energy credits from the same or

17 substantially similar technology, same or substantially

18 similar vintage (new or existing), the same or

19 substantially similar quantity, and the same or

20 substantially similar contract length and structure.

21 Benchmarks shall reflect development, financing, or

22 related costs resulting from requirements imposed through

23 other provisions of State law, including, but not limited

24 to, requirements in subparagraphs (P) and (Q) of this

25 paragraph (1) and the Renewable Energy Facilities

26 Agricultural Impact Mitigation Act. Confidential

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1 benchmarks shall be developed by the procurement

2 administrator, in consultation with the Commission staff,

3 Agency staff, and the procurement monitor and shall be

4 subject to Commission review and approval. If price

5 benchmarks for like products in the region are not

6 available, the procurement administrator shall establish

7 price benchmarks based on publicly available data on

8 regional technology costs and expected current and future

9 regional energy prices. The benchmarks in this Section

10 shall not be used to curtail or otherwise reduce

11 contractual obligations entered into by or through the

12 Agency prior to June 1, 2017 (the effective date of Public

13 Act 99-906).

14 (E) For purposes of this subsection (c), the required

15 procurement of cost-effective renewable energy resources

16 for a particular year commencing prior to June 1, 2017

17 shall be measured as a percentage of the actual amount of

18 electricity (megawatt-hours) supplied by the electric

19 utility to eligible retail customers in the delivery year

20 ending immediately prior to the procurement, and, for

21 delivery years commencing on and after June 1, 2017, the

22 required procurement of cost-effective renewable energy

23 resources for a particular year shall be measured as a

24 percentage of the actual amount of electricity

25 (megawatt-hours) delivered by the electric utility in the

26 delivery year ending immediately prior to the procurement,

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1 to all retail customers in its service territory. For

2 purposes of this subsection (c), the amount paid per

3 kilowatthour means the total amount paid for electric

4 service expressed on a per kilowatthour basis. For

5 purposes of this subsection (c), the total amount paid for

6 electric service includes without limitation amounts paid

7 for supply, transmission, capacity, distribution,

8 surcharges, and add-on taxes.

9 Notwithstanding the requirements of this subsection

10 (c), the total of renewable energy resources procured

11 under the procurement plan for any single year shall be

12 subject to the limitations of this subparagraph (E). Such

13 procurement shall be reduced for all retail customers

14 based on the amount necessary to limit the annual

15 estimated average net increase due to the costs of these

16 resources included in the amounts paid by eligible retail

17 customers in connection with electric service to no more

18 than 4.25% of the amount paid per kilowatthour by those

19 customers during the year ending May 31, 2009. To arrive

20 at a maximum dollar amount of renewable energy resources

21 to be procured for the particular delivery year, the

22 resulting per kilowatthour amount shall be applied to the

23 actual amount of kilowatthours of electricity delivered,

24 or applicable portion of such amount as specified in

25 paragraph (1) of this subsection (c), as applicable, by

26 the electric utility in the delivery year immediately

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1 prior to the procurement to all retail customers in its

2 service territory. The calculations required by this

3 subparagraph (E) shall be made only once for each delivery

4 year at the time that the renewable energy resources are

5 procured. Once the determination as to the amount of

6 renewable energy resources to procure is made based on the

7 calculations set forth in this subparagraph (E) and the

8 contracts procuring those amounts are executed, no

9 subsequent rate impact determinations shall be made and no

10 adjustments to those contract amounts shall be allowed.

11 All costs incurred under such contracts shall be fully

12 recoverable by the electric utility as provided in this

13 Section.

14 (F) If the limitation on the amount of renewable

15 energy resources procured in subparagraph (E) of this

16 paragraph (1) prevents the Agency from meeting all of the

17 goals in this subsection (c), the Agency's long-term plan

18 shall prioritize compliance with the requirements of this

19 subsection (c) regarding renewable energy credits in the

20 following order:

21 (i) renewable energy credits under existing

22 contractual obligations as of June 1, 2021;

23 (i-5) funding for the Illinois Solar for All

24 Program, as described in subparagraph (O) of this

25 paragraph (1);

26 (ii) renewable energy credits necessary to comply

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1 with the new wind and new photovoltaic procurement

2 requirements described in items (i) through (iii) of

3 subparagraph (C) of this paragraph (1); and

4 (iii) renewable energy credits necessary to meet

5 the remaining requirements of this subsection (c).

6 (G) The following provisions shall apply to the

7 Agency's procurement of renewable energy credits under

8 this subsection (c):

9 (i) Notwithstanding whether a long-term renewable

10 resources procurement plan has been approved, the

11 Agency shall conduct an initial forward procurement

12 for renewable energy credits from new utility-scale

13 wind projects within 160 days after June 1, 2017 (the

14 effective date of Public Act 99-906). For the purposes

15 of this initial forward procurement, the Agency shall

16 solicit 15-year contracts for delivery of 1,000,000

17 renewable energy credits delivered annually from new

18 utility-scale wind projects to begin delivery on June

19 1, 2019, if available, but not later than June 1, 2021,

20 unless the project has delays in the establishment of

21 an operating interconnection with the applicable

22 transmission or distribution system as a result of the

23 actions or inactions of the transmission or

24 distribution provider, or other causes for force

25 majeure as outlined in the procurement contract, in

26 which case, not later than June 1, 2022. Payments to

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1 suppliers of renewable energy credits shall commence

2 upon delivery. Renewable energy credits procured under

3 this initial procurement shall be included in the

4 Agency's long-term plan and shall apply to all

5 renewable energy goals in this subsection (c).

6 (ii) Notwithstanding whether a long-term renewable

7 resources procurement plan has been approved, the

8 Agency shall conduct an initial forward procurement

9 for renewable energy credits from new utility-scale

10 solar projects and brownfield site photovoltaic

11 projects within one year after June 1, 2017 (the

12 effective date of Public Act 99-906). For the purposes

13 of this initial forward procurement, the Agency shall

14 solicit 15-year contracts for delivery of 1,000,000

15 renewable energy credits delivered annually from new

16 utility-scale solar projects and brownfield site

17 photovoltaic projects to begin delivery on June 1,

18 2019, if available, but not later than June 1, 2021,

19 unless the project has delays in the establishment of

20 an operating interconnection with the applicable

21 transmission or distribution system as a result of the

22 actions or inactions of the transmission or

23 distribution provider, or other causes for force

24 majeure as outlined in the procurement contract, in

25 which case, not later than June 1, 2022. The Agency may

26 structure this initial procurement in one or more

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1 discrete procurement events. Payments to suppliers of

2 renewable energy credits shall commence upon delivery.

3 Renewable energy credits procured under this initial

4 procurement shall be included in the Agency's

5 long-term plan and shall apply to all renewable energy

6 goals in this subsection (c).

7 (iii) Notwithstanding whether the Commission has

8 approved the periodic long-term renewable resources

9 procurement plan revision described in Section

10 16-111.5 of the Public Utilities Act, the Agency shall

11 conduct at least one subsequent forward procurement

12 for renewable energy credits from new utility-scale

13 wind projects, new utility-scale solar projects, and

14 new brownfield site photovoltaic projects within 240

15 days after the effective date of this amendatory Act

16 of the 102nd General Assembly in quantities necessary

17 to meet the requirements of subparagraph (C) of this

18 paragraph (1) through the delivery year beginning June

19 1, 2021.

20 (iv) Notwithstanding whether the Commission has

21 approved the periodic long-term renewable resources

22 procurement plan revision described in Section

23 16-111.5 of the Public Utilities Act, the Agency shall

24 open capacity for each category in the Adjustable

25 Block program within 90 days after the effective date

26 of this amendatory Act of the 102nd General Assembly

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1 manner:

2 (1) The Agency shall open the first block of

3 annual capacity for the category described in item

4 (i) of subparagraph (K) of this paragraph (1). The

5 first block of annual capacity for item (i) shall

6 be for at least 75 megawatts of total nameplate

7 capacity. The price of the renewable energy credit

8 for this block of capacity shall be 4% less than

9 the price of the last open block in this category.

10 Projects on a waitlist shall be awarded contracts

11 first in the order in which they appear on the

12 waitlist. Notwithstanding anything to the

13 contrary, for those renewable energy credits that

14 qualify and are procured under this subitem (1) of

15 this item (iv), the renewable energy credit

16 delivery contract value shall be paid in full,

17 based on the estimated generation during the first

18 15 years of operation, by the contracting

19 utilities at the time that the facility producing

20 the renewable energy credits is interconnected at

21 the distribution system level of the utility and

22 verified as energized and in compliance by the

23 Program Administrator. The electric utility shall

24 receive and retire all renewable energy credits

25 generated by the project for the first 15 years of

26 operation. Renewable energy credits generated by

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1 the project thereafter shall not be transferred

2 under the renewable energy credit delivery

3 contract with the counterparty electric utility.

4 (2) The Agency shall open the first block of

5 annual capacity for the category described in item

6 (ii) of subparagraph (K) of this paragraph (1).

7 The first block of annual capacity for item (ii)

8 shall be for at least 75 megawatts of total

9 nameplate capacity.

10 (A) The price of the renewable energy

11 credit for any project on a waitlist for this

12 category before the opening of this block

13 shall be 4% less than the price of the last

14 open block in this category. Projects on the

15 waitlist shall be awarded contracts first in

16 the order in which they appear on the

17 waitlist. Any projects that are less than or

18 equal to 25 kilowatts in size on the waitlist

19 for this capacity shall be moved to the

20 waitlist for paragraph (1) of this item (iv).

21 Notwithstanding anything to the contrary,

22 projects that were on the waitlist prior to

23 opening of this block shall not be required to

24 be in compliance with the requirements of

25 subparagraph (Q) of this paragraph (1) of this

26 subsection (c). Notwithstanding anything to

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1 the contrary, for those renewable energy

2 credits procured from projects that were on

3 the waitlist for this category before the

4 opening of this block 20% of the renewable

5 energy credit delivery contract value, based

6 on the estimated generation during the first

7 15 years of operation, shall be paid by the

8 contracting utilities at the time that the

9 facility producing the renewable energy

10 credits is interconnected at the distribution

11 system level of the utility and verified as

12 energized by the Program Administrator. The

13 remaining portion shall be paid ratably over

14 the subsequent 4-year period. The electric

15 utility shall receive and retire all renewable

16 energy credits generated by the project during

17 the first 15 years of operation. Renewable

18 energy credits generated by the project

19 thereafter shall not be transferred under the

20 renewable energy credit delivery contract with

21 the counterparty electric utility.

22 (B) The price of renewable energy credits

23 for any project not on the waitlist for this

24 category before the opening of the block shall

25 be determined and published by the Agency.

26 Projects not on a waitlist as of the opening

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1 of this block shall be subject to the

2 requirements of subparagraph (Q) of this

3 paragraph (1), as applicable. Projects not on

4 a waitlist as of the opening of this block

5 shall be subject to the contract provisions

6 outlined in item (iii) of subparagraph (L) of

7 this paragraph (1). The Agency shall strive to

8 publish updated prices and an updated

9 renewable energy credit delivery contract as

10 quickly as possible.

11 (3) For opening the first 2 blocks of annual

12 capacity for projects participating in item (iii)

13 of subparagraph (K) of paragraph (1) of subsection

14 (c), projects shall be selected exclusively from

15 those projects on the ordinal waitlists of

16 community renewable generation projects

17 established by the Agency based on the status of

18 those ordinal waitlists as of December 31, 2020,

19 and only those projects previously determined to

20 be eligible for the Agency's April 2019 community

21 solar project selection process.

22 The first 2 blocks of annual capacity for item

23 (iii) shall be for 250 megawatts of total

24 nameplate capacity, with both blocks opening

25 simultaneously under the schedule outlined in the

26 paragraphs below. Projects shall be selected as

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1 follows:

2 (A) The geographic balance of selected

3 projects shall follow the Group classification

4 found in the Agency's Revised Long-Term

5 Renewable Resources Procurement Plan, with 70%

6 of capacity allocated to projects on the Group

7 B waitlist and 30% of capacity allocated to

8 projects on the Group A waitlist.

9 (B) Contract awards for waitlisted

10 projects shall be allocated proportionate to

11 the total nameplate capacity amount across

12 both ordinal waitlists associated with that

13 applicant firm or its affiliates, subject to

14 the following conditions.

15 (i) Each applicant firm having a

16 waitlisted project eligible for selection

17 shall receive no less than 500 kilowatts

18 in awarded capacity across all groups, and

19 no approved vendor may receive more than

20 20% of each Group's waitlist allocation.

21 (ii) Each applicant firm, upon

22 receiving an award of program capacity

23 proportionate to its waitlisted capacity,

24 may then determine which waitlisted

25 projects it chooses to be selected for a

26 contract award up to that capacity amount.

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1 (iii) Assuming all other program

2 requirements are met, applicant firms may

3 adjust the nameplate capacity of applicant

4 projects without losing waitlist

5 eligibility, so long as no project is

6 greater than 2,000 kilowatts in size.

7 (iv) Assuming all other program

8 requirements are met, applicant firms may

9 adjust the expected production associated

10 with applicant projects, subject to

11 verification by the Program Administrator.

12 (C) After a review of affiliate

13 information and the current ordinal waitlists,

14 the Agency shall announce the nameplate

15 capacity award amounts associated with

16 applicant firms no later than 90 days after

17 the effective date of this amendatory Act of

18 the 102nd General Assembly.

19 (D) Applicant firms shall submit their

20 portfolio of projects used to satisfy those

21 contract awards no less than 90 days after the

22 Agency's announcement. The total nameplate

23 capacity of all projects used to satisfy that

24 portfolio shall be no greater than the

25 Agency's nameplate capacity award amount

26 associated with that applicant firm. An

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1 applicant firm may decline, in whole or in

2 part, its nameplate capacity award without

3 penalty, with such unmet capacity rolled over

4 to the next block opening for project

5 selection under item (iii) of subparagraph (K)

6 of this subsection (c). Any projects not

7 included in an applicant firm's portfolio may

8 reapply without prejudice upon the next block

9 reopening for project selection under item

10 (iii) of subparagraph (K) of this subsection

11 (c).

12 (E) The renewable energy credit delivery

13 contract shall be subject to the contract and

14 payment terms outlined in item (iv) of

15 subparagraph (L) of this subsection (c).

16 Contract instruments used for this

17 subparagraph shall contain the following

18 terms:

19 (i) Renewable energy credit prices

20 shall be fixed, without further adjustment

21 under any other provision of this Act or

22 for any other reason, at 10% lower than

23 prices applicable to the last open block

24 for this category, inclusive of any adders

25 available for achieving a minimum of 50%

26 of subscribers to the project's nameplate

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1 capacity being residential or small

2 commercial customers with subscriptions of

3 below 25 kilowatts in size;

4 (ii) A requirement that a minimum of

5 50% of subscribers to the project's

6 nameplate capacity be residential or small

7 commercial customers with subscriptions of

8 below 25 kilowatts in size;

9 (iii) Permission for the ability of a

10 contract holder to substitute projects

11 with other waitlisted projects without

12 penalty should a project receive a

13 non-binding estimate of costs to construct

14 the interconnection facilities and any

15 required distribution upgrades associated

16 with that project of greater than 30 cents

17 per watt AC of that project's nameplate

18 capacity. In developing the applicable

19 contract instrument, the Agency may

20 consider whether other circumstances

21 outside of the control of the applicant

22 firm should also warrant project

23 substitution rights.

24 The Agency shall publish a finalized

25 updated renewable energy credit delivery

26 contract developed consistent with these terms

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1 and conditions no less than 30 days before

2 applicant firms must submit their portfolio of

3 projects pursuant to item (D).

4 (F) To be eligible for an award, the

5 applicant firm shall certify that not less

6 than prevailing wage, as determined pursuant

7 to the Illinois Prevailing Wage Act, was or

8 will be paid to employees who are engaged in

9 construction activities associated with a

10 selected project.

11 (4) The Agency shall open the first block of

12 annual capacity for the category described in item

13 (iv) of subparagraph (K) of this paragraph (1).

14 The first block of annual capacity for item (iv)

15 shall be for at least 50 megawatts of total

16 nameplate capacity. Renewable energy credit prices

17 shall be fixed, without further adjustment under

18 any other provision of this Act or for any other

19 reason, at the price in the last open block in the

20 category described in item (ii) of subparagraph

21 (K) of this paragraph (1). Pricing for future

22 blocks of annual capacity for this category may be

23 adjusted in the Agency's second revision to its

24 Long-Term Renewable Resources Procurement Plan.

25 Projects in this category shall be subject to the

26 contract terms outlined in item (iv) of

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1 subparagraph (L) of this paragraph (1).

2 (5) The Agency shall open the equivalent of 2

3 years of annual capacity for the category

4 described in item (v) of subparagraph (K) of this

5 paragraph (1). The first block of annual capacity

6 for item (v) shall be for at least 10 megawatts of

7 total nameplate capacity. Notwithstanding the

8 provisions of item (v) of subparagraph (K) of this

9 paragraph (1), for the purpose of this initial

10 block, the agency shall accept new project

11 applications intended to increase the diversity of

12 areas hosting community solar projects, the

13 business models of projects, and the size of

14 projects, as described by the Agency in its

15 long-term renewable resources procurement plan

16 that is approved as of the effective date of this

17 amendatory Act of the 102nd General Assembly.

18 Projects in this category shall be subject to the

19 contract terms outlined in item (iii) of

20 subsection (L) of this paragraph (1).

21 (6) The Agency shall open the first blocks of

22 annual capacity for the category described in item

23 (vi) of subparagraph (K) of this paragraph (1),

24 with allocations of capacity within the block

25 generally matching the historical share of block

26 capacity allocated between the category described

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1 in items (i) and (ii) of subparagraph (K) of this

2 paragraph (1). The first two blocks of annual

3 capacity for item (vi) shall be for at least 75

4 megawatts of total nameplate capacity. The price

5 of renewable energy credits for the blocks of

6 capacity shall be 4% less than the price of the

7 last open blocks in the categories described in

8 items (i) and (ii) of subparagraph (K) of this

9 paragraph (1). Pricing for future blocks of annual

10 capacity for this category may be adjusted in the

11 Agency's second revision to its Long-Term

12 Renewable Resources Procurement Plan. Projects in

13 this category shall be subject to the applicable

14 contract terms outlined in items (ii) and (iii) of

15 subparagraph (L) of this paragraph (1).

16 (v) Upon the effective date of this amendatory Act

17 of the 102nd General Assembly, for all competitive

18 procurements and any procurements of renewable energy

19 credit from new utility-scale wind and new

20 utility-scale photovoltaic projects, the Agency shall

21 procure indexed renewable energy credits and direct

22 respondents to offer a strike price.

23 (1) The purchase price of the indexed

24 renewable energy credit payment shall be

25 calculated for each settlement period. That

26 payment, for any settlement period, shall be equal

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1 to the difference resulting from subtracting the

2 strike price from the index price for that

3 settlement period. If this difference results in a

4 negative number, the indexed REC counterparty

5 shall owe the seller the absolute value multiplied

6 by the quantity of energy produced in the relevant

7 settlement period. If this difference results in a

8 positive number, the seller shall owe the indexed

9 REC counterparty this amount multiplied by the

10 quantity of energy produced in the relevant

11 settlement period.

12 (2) Parties shall cash settle every month,

13 summing up all settlements (both positive and

14 negative, if applicable) for the prior month.

15 (3) To ensure funding in the annual budget

16 established under subparagraph (E) for indexed

17 renewable energy credit procurements for each year

18 of the term of such contracts, which must have a

19 minimum tenure of 20 calendar years, the

20 procurement administrator, Agency, Commission

21 staff, and procurement monitor shall quantify the

22 annual cost of the contract by utilizing an

23 industry-standard, third-party forward price curve

24 for energy at the appropriate hub or load zone,

25 including the estimated magnitude and timing of

26 the price effects related to federal carbon

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1 controls. Each forward price curve shall contain a

2 specific value of the forecasted market price of

3 electricity for each annual delivery year of the

4 contract. For procurement planning purposes, the

5 impact on the annual budget for the cost of

6 indexed renewable energy credits for each delivery

7 year shall be determined as the expected annual

8 contract expenditure for that year, equaling the

9 difference between (i) the sum across all relevant

10 contracts of the applicable strike price

11 multiplied by contract quantity and (ii) the sum

12 across all relevant contracts of the forward price

13 curve for the applicable load zone for that year

14 multiplied by contract quantity. The contracting

15 utility shall not assume an obligation in excess

16 of the estimated annual cost of the contracts for

17 indexed renewable energy credits. Forward curves

18 shall be revised on an annual basis as updated

19 forward price curves are released and filed with

20 the Commission in the proceeding approving the

21 Agency's most recent long-term renewable resources

22 procurement plan. If the expected contract spend

23 is higher or lower than the total quantity of

24 contracts multiplied by the forward price curve

25 value for that year, the forward price curve shall

26 be updated by the procurement administrator, in

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1 consultation with the Agency, Commission staff,

2 and procurement monitors, using then-currently

3 available price forecast data and additional

4 budget dollars shall be obligated or reobligated

5 as appropriate.

6 (4) To ensure that indexed renewable energy

7 credit prices remain predictable and affordable,

8 the Agency may consider the institution of a price

9 collar on REC prices paid under indexed renewable

10 energy credit procurements establishing floor and

11 ceiling REC prices applicable to indexed REC

12 contract prices. Any price collars applicable to

13 indexed REC procurements shall be proposed by the

14 Agency through its long-term renewable resources

15 procurement plan.

16 (vi) All procurements under this subparagraph (G)

17 shall comply with the geographic requirements in

18 subparagraph (I) of this paragraph (1) and shall

19 follow the procurement processes and procedures

20 described in this Section and Section 16-111.5 of the

21 Public Utilities Act to the extent practicable, and

22 these processes and procedures may be expedited to

23 accommodate the schedule established by this

24 subparagraph (G).

25 (H) The procurement of renewable energy resources for

26 a given delivery year shall be reduced as described in

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1 this subparagraph (H) if an alternative retail electric

2 supplier meets the requirements described in this

3 subparagraph (H).

4 (i) Within 45 days after June 1, 2017 (the

5 effective date of Public Act 99-906), an alternative

6 retail electric supplier or its successor shall submit

7 an informational filing to the Illinois Commerce

8 Commission certifying that, as of December 31, 2015,

9 the alternative retail electric supplier owned one or

10 more electric generating facilities that generates

11 renewable energy resources as defined in Section 1-10

12 of this Act, provided that such facilities are not

13 powered by wind or photovoltaics, and the facilities

14 generate one renewable energy credit for each

15 megawatthour of energy produced from the facility.

16 The informational filing shall identify each

17 facility that was eligible to satisfy the alternative

18 retail electric supplier's obligations under Section

19 16-115D of the Public Utilities Act as described in

20 this item (i).

21 (ii) For a given delivery year, the alternative

22 retail electric supplier may elect to supply its

23 retail customers with renewable energy credits from

24 the facility or facilities described in item (i) of

25 this subparagraph (H) that continue to be owned by the

26 alternative retail electric supplier.

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LRB103 27684 SPS 65074 a

1 (iii) The alternative retail electric supplier

2 shall notify the Agency and the applicable utility, no

3 later than February 28 of the year preceding the

4 applicable delivery year or 15 days after June 1, 2017

5 (the effective date of Public Act 99-906), whichever

6 is later, of its election under item (ii) of this

7 subparagraph (H) to supply renewable energy credits to

8 retail customers of the utility. Such election shall

9 identify the amount of renewable energy credits to be

10 supplied by the alternative retail electric supplier

11 to the utility's retail customers and the source of

12 the renewable energy credits identified in the

13 informational filing as described in item (i) of this

14 subparagraph (H), subject to the following

15 limitations:

16 For the delivery year beginning June 1, 2018,

17 the maximum amount of renewable energy credits to

18 be supplied by an alternative retail electric

19 supplier under this subparagraph (H) shall be 68%

20 multiplied by 25% multiplied by 14.5% multiplied

21 by the amount of metered electricity

22 (megawatt-hours) delivered by the alternative

23 retail electric supplier to Illinois retail

24 customers during the delivery year ending May 31,

25 2016.

26 For delivery years beginning June 1, 2019 and

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1 each year thereafter, the maximum amount of

2 renewable energy credits to be supplied by an

3 alternative retail electric supplier under this

4 subparagraph (H) shall be 68% multiplied by 50%

5 multiplied by 16% multiplied by the amount of

6 metered electricity (megawatt-hours) delivered by

7 the alternative retail electric supplier to

8 Illinois retail customers during the delivery year

9 ending May 31, 2016, provided that the 16% value

10 shall increase by 1.5% each delivery year

11 thereafter to 25% by the delivery year beginning

12 June 1, 2025, and thereafter the 25% value shall

13 apply to each delivery year.

14 For each delivery year, the total amount of

15 renewable energy credits supplied by all alternative

16 retail electric suppliers under this subparagraph (H)

17 shall not exceed 9% of the Illinois target renewable

18 energy credit quantity. The Illinois target renewable

19 energy credit quantity for the delivery year beginning

20 June 1, 2018 is 14.5% multiplied by the total amount of

21 metered electricity (megawatt-hours) delivered in the

22 delivery year immediately preceding that delivery

23 year, provided that the 14.5% shall increase by 1.5%

24 each delivery year thereafter to 25% by the delivery

25 year beginning June 1, 2025, and thereafter the 25%

26 value shall apply to each delivery year.

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1 If the requirements set forth in items (i) through

2 (iii) of this subparagraph (H) are met, the charges

3 that would otherwise be applicable to the retail

4 customers of the alternative retail electric supplier

5 under paragraph (6) of this subsection (c) for the

6 applicable delivery year shall be reduced by the ratio

7 of the quantity of renewable energy credits supplied

8 by the alternative retail electric supplier compared

9 to that supplier's target renewable energy credit

10 quantity. The supplier's target renewable energy

11 credit quantity for the delivery year beginning June

12 1, 2018 is 14.5% multiplied by the total amount of

13 metered electricity (megawatt-hours) delivered by the

14 alternative retail supplier in that delivery year,

15 provided that the 14.5% shall increase by 1.5% each

16 delivery year thereafter to 25% by the delivery year

17 beginning June 1, 2025, and thereafter the 25% value

18 shall apply to each delivery year.

19 On or before April 1 of each year, the Agency shall

20 annually publish a report on its website that

21 identifies the aggregate amount of renewable energy

22 credits supplied by alternative retail electric

23 suppliers under this subparagraph (H).

24 (I) The Agency shall design its long-term renewable

25 energy procurement plan to maximize the State's interest

26 in the health, safety, and welfare of its residents,

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1 including but not limited to minimizing sulfur dioxide,

2 nitrogen oxide, particulate matter and other pollution

3 that adversely affects public health in this State,

4 increasing fuel and resource diversity in this State,

5 enhancing the reliability and resiliency of the

6 electricity distribution system in this State, meeting

7 goals to limit carbon dioxide emissions under federal or

8 State law, and contributing to a cleaner and healthier

9 environment for the citizens of this State. In order to

10 further these legislative purposes, renewable energy

11 credits shall be eligible to be counted toward the

12 renewable energy requirements of this subsection (c) if

13 they are generated from facilities located in this State.

14 The Agency may qualify renewable energy credits from

15 facilities located in states adjacent to Illinois or

16 renewable energy credits associated with the electricity

17 generated by a utility-scale wind energy facility or

18 utility-scale photovoltaic facility and transmitted by a

19 qualifying direct current project described in subsection

20 (b-5) of Section 8-406 of the Public Utilities Act to a

21 delivery point on the electric transmission grid located

22 in this State or a state adjacent to Illinois, if the

23 generator demonstrates and the Agency determines that the

24 operation of such facility or facilities will help promote

25 the State's interest in the health, safety, and welfare of

26 its residents based on the public interest criteria

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1 described above. For the purposes of this Section,

2 renewable resources that are delivered via a high voltage

3 direct current converter station located in Illinois shall

4 be deemed generated in Illinois at the time and location

5 the energy is converted to alternating current by the high

6 voltage direct current converter station if the high

7 voltage direct current transmission line: (i) after the

8 effective date of this amendatory Act of the 102nd General

9 Assembly, was constructed with a project labor agreement;

10 (ii) is capable of transmitting electricity at 525kv;

11 (iii) has an Illinois converter station located and

12 interconnected in the region of the PJM Interconnection,

13 LLC; (iv) does not operate as a public utility; and (v) if

14 the high voltage direct current transmission line was

15 energized after June 1, 2023. To ensure that the public

16 interest criteria are applied to the procurement and given

17 full effect, the Agency's long-term procurement plan shall

18 describe in detail how each public interest factor shall

19 be considered and weighted for facilities located in

20 states adjacent to Illinois.

21 (J) In order to promote the competitive development of

22 renewable energy resources in furtherance of the State's

23 interest in the health, safety, and welfare of its

24 residents, renewable energy credits shall not be eligible

25 to be counted toward the renewable energy requirements of

26 this subsection (c) if they are sourced from a generating

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1 unit whose costs were being recovered through rates

2 regulated by this State or any other state or states on or

3 after January 1, 2017. Each contract executed to purchase

4 renewable energy credits under this subsection (c) shall

5 provide for the contract's termination if the costs of the

6 generating unit supplying the renewable energy credits

7 subsequently begin to be recovered through rates regulated

8 by this State or any other state or states; and each

9 contract shall further provide that, in that event, the

10 supplier of the credits must return 110% of all payments

11 received under the contract. Amounts returned under the

12 requirements of this subparagraph (J) shall be retained by

13 the utility and all of these amounts shall be used for the

14 procurement of additional renewable energy credits from

15 new wind or new photovoltaic resources as defined in this

16 subsection (c). The long-term plan shall provide that

17 these renewable energy credits shall be procured in the

18 next procurement event.

19 Notwithstanding the limitations of this subparagraph

20 (J), renewable energy credits sourced from generating

21 units that are constructed, purchased, owned, or leased by

22 an electric utility as part of an approved project,

23 program, or pilot under Section 1-56 of this Act shall be

24 eligible to be counted toward the renewable energy

25 requirements of this subsection (c), regardless of how the

26 costs of these units are recovered. As long as a

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1 generating unit or an identifiable portion of a generating

2 unit has not had and does not have its costs recovered

3 through rates regulated by this State or any other state,

4 HVDC renewable energy credits associated with that

5 generating unit or identifiable portion thereof shall be

6 eligible to be counted toward the renewable energy

7 requirements of this subsection (c).

8 (K) The long-term renewable resources procurement plan

9 developed by the Agency in accordance with subparagraph

10 (A) of this paragraph (1) shall include an Adjustable

11 Block program for the procurement of renewable energy

12 credits from new photovoltaic projects that are

13 distributed renewable energy generation devices or new

14 photovoltaic community renewable generation projects. The

15 Adjustable Block program shall be generally designed to

16 provide for the steady, predictable, and sustainable

17 growth of new solar photovoltaic development in Illinois.

18 To this end, the Adjustable Block program shall provide a

19 transparent annual schedule of prices and quantities to

20 enable the photovoltaic market to scale up and for

21 renewable energy credit prices to adjust at a predictable

22 rate over time. The prices set by the Adjustable Block

23 program can be reflected as a set value or as the product

24 of a formula.

25 The Adjustable Block program shall include for each

26 category of eligible projects for each delivery year: a

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1 single block of nameplate capacity, a price for renewable

2 energy credits within that block, and the terms and

3 conditions for securing a spot on a waitlist once the

4 block is fully committed or reserved. Except as outlined

5 below, the waitlist of projects in a given year will carry

6 over to apply to the subsequent year when another block is

7 opened. Only projects energized on or after June 1, 2017

8 shall be eligible for the Adjustable Block program. For

9 each category for each delivery year the Agency shall

10 determine the amount of generation capacity in each block,

11 and the purchase price for each block, provided that the

12 purchase price provided and the total amount of generation

13 in all blocks for all categories shall be sufficient to

14 meet the goals in this subsection (c). The Agency shall

15 strive to issue a single block sized to provide for

16 stability and market growth. The Agency shall establish

17 program eligibility requirements that ensure that projects

18 that enter the program are sufficiently mature to indicate

19 a demonstrable path to completion. The Agency may

20 periodically review its prior decisions establishing the

21 amount of generation capacity in each block, and the

22 purchase price for each block, and may propose, on an

23 expedited basis, changes to these previously set values,

24 including but not limited to redistributing these amounts

25 and the available funds as necessary and appropriate,

26 subject to Commission approval as part of the periodic

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1 plan revision process described in Section 16-111.5 of the

2 Public Utilities Act. The Agency may define different

3 block sizes, purchase prices, or other distinct terms and

4 conditions for projects located in different utility

5 service territories if the Agency deems it necessary to

6 meet the goals in this subsection (c).

7 The Adjustable Block program shall include the

8 following categories in at least the following amounts:

9 (i) At least 20% from distributed renewable energy

10 generation devices with a nameplate capacity of no

11 more than 25 kilowatts.

12 (ii) At least 20% from distributed renewable

13 energy generation devices with a nameplate capacity of

14 more than 25 kilowatts and no more than 5,000

15 kilowatts. The Agency may create sub-categories within

16 this category to account for the differences between

17 projects for small commercial customers, large

18 commercial customers, and public or non-profit

19 customers.

20 (iii) At least 30% from photovoltaic community

21 renewable generation projects. Capacity for this

22 category for the first 2 delivery years after the

23 effective date of this amendatory Act of the 102nd

24 General Assembly shall be allocated to waitlist

25 projects as provided in paragraph (3) of item (iv) of

26 subparagraph (G). Starting in the third delivery year

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1 after the effective date of this amendatory Act of the

2 102nd General Assembly or earlier if the Agency

3 determines there is additional capacity needed for to

4 meet previous delivery year requirements, the

5 following shall apply:

6 (1) the Agency shall select projects on a

7 first-come, first-serve basis, however the Agency

8 may suggest additional methods to prioritize

9 projects that are submitted at the same time;

10 (2) projects shall have subscriptions of 25 kW

11 or less for at least 50% of the facility's

12 nameplate capacity and the Agency shall price the

13 renewable energy credits with that as a factor;

14 (3) projects shall not be colocated with one

15 or more other community renewable generation

16 projects, as defined in the Agency's first revised

17 long-term renewable resources procurement plan

18 approved by the Commission on February 18, 2020,

19 such that the aggregate nameplate capacity exceeds

20 5,000 kilowatts; and

21 (4) projects greater than 2 MW may not apply

22 until after the approval of the Agency's revised

23 Long-Term Renewable Resources Procurement Plan

24 after the effective date of this amendatory Act of

25 the 102nd General Assembly.

26 (iv) At least 15% from distributed renewable

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1 generation devices or photovoltaic community renewable

2 generation projects installed on ~~at~~ public school land

3 ~~schools~~. The Agency may create subcategories within

4 this category to account for the differences between

5 project size or location. Projects located within

6 environmental justice communities or within

7 Organizational Units that fall within Tier 1 or Tier 2

8 shall be given priority. Each of the Agency's periodic

9 updates to its long-term renewable resources

10 procurement plan to incorporate the procurement

11 described in this subparagraph (iv) shall also include

12 the proposed quantities or blocks, pricing, and

13 contract terms applicable to the procurement as

14 indicated herein. In each such update and procurement,

15 the Agency shall set the renewable energy credit price

16 and establish payment terms for the renewable energy

17 credits procured pursuant to this subparagraph (iv)

18 that make it feasible and affordable for public

19 schools to install photovoltaic distributed renewable

20 energy devices on their premises, including, but not

21 limited to, those public schools subject to the

22 prioritization provisions of this subparagraph. For

23 the purposes of this item (iv):

24 "Environmental Justice Community" shall have the

25 same meaning set forth in the Agency's long-term

26 renewable resources procurement plan;

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1 "Organization Unit", "Tier 1" and "Tier 2" shall

2 have the meanings set for in Section 18-8.15 of the

3 School Code;

4 "Public schools" shall have the meaning set forth

5 in Section 1-3 of the School Code and includes public

6 institutions of higher education, as defined in the

7 Board of Higher Education Act.

8 (v) At least 5% from community-driven community

9 solar projects intended to provide more direct and

10 tangible connection and benefits to the communities

11 which they serve or in which they operate and,

12 additionally, to increase the variety of community

13 solar locations, models, and options in Illinois. As

14 part of its long-term renewable resources procurement

15 plan, the Agency shall develop selection criteria for

16 projects participating in this category. Nothing in

17 this Section shall preclude the Agency from creating a

18 selection process that maximizes community ownership

19 and community benefits in selecting projects to

20 receive renewable energy credits. Selection criteria

21 shall include:

22 (1) community ownership or community

23 wealth-building;

24 (2) additional direct and indirect community

25 benefit, beyond project participation as a

26 subscriber, including, but not limited to,

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1 economic, environmental, social, cultural, and

2 physical benefits;

3 (3) meaningful involvement in project

4 organization and development by community members

5 or nonprofit organizations or public entities

6 located in or serving the community;

7 (4) engagement in project operations and

8 management by nonprofit organizations, public

9 entities, or community members; and

10 (5) whether a project is developed in response

11 to a site-specific RFP developed by community

12 members or a nonprofit organization or public

13 entity located in or serving the community.

14 Selection criteria may also prioritize projects

15 that:

16 (1) are developed in collaboration with or to

17 provide complementary opportunities for the Clean

18 Jobs Workforce Network Program, the Illinois

19 Climate Works Preapprenticeship Program, the

20 Returning Residents Clean Jobs Training Program,

21 the Clean Energy Contractor Incubator Program, or

22 the Clean Energy Primes Contractor Accelerator

23 Program;

24 (2) increase the diversity of locations of

25 community solar projects in Illinois, including by

26 locating in urban areas and population centers;

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1 (3) are located in Equity Investment Eligible

2 Communities;

3 (4) are not greenfield projects;

4 (5) serve only local subscribers;

5 (6) have a nameplate capacity that does not

6 exceed 500 kW;

7 (7) are developed by an equity eligible

8 contractor; or

9 (8) otherwise meaningfully advance the goals

10 of providing more direct and tangible connection

11 and benefits to the communities which they serve

12 or in which they operate and increasing the

13 variety of community solar locations, models, and

14 options in Illinois.

15 For the purposes of this item (v):

16 "Community" means a social unit in which people

17 come together regularly to effect change; a social

18 unit in which participants are marked by a cooperative

19 spirit, a common purpose, or shared interests or

20 characteristics; or a space understood by its

21 residents to be delineated through geographic

22 boundaries or landmarks.

23 "Community benefit" means a range of services and

24 activities that provide affirmative, economic,

25 environmental, social, cultural, or physical value to

26 a community; or a mechanism that enables economic

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1 development, high-quality employment, and education

2 opportunities for local workers and residents, or

3 formal monitoring and oversight structures such that

4 community members may ensure that those services and

5 activities respond to local knowledge and needs.

6 "Community ownership" means an arrangement in

7 which an electric generating facility is, or over time

8 will be, in significant part, owned collectively by

9 members of the community to which an electric

10 generating facility provides benefits; members of that

11 community participate in decisions regarding the

12 governance, operation, maintenance, and upgrades of

13 and to that facility; and members of that community

14 benefit from regular use of that facility.

15 Terms and guidance within these criteria that are

16 not defined in this item (v) shall be defined by the

17 Agency, with stakeholder input, during the development

18 of the Agency's long-term renewable resources

19 procurement plan. The Agency shall develop regular

20 opportunities for projects to submit applications for

21 projects under this category, and develop selection

22 criteria that gives preference to projects that better

23 meet individual criteria as well as projects that

24 address a higher number of criteria.

25 (vi) At least 10% from distributed renewable

26 energy generation devices, which includes distributed

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1 renewable energy devices with a nameplate capacity

2 under 5,000 kilowatts or photovoltaic community

3 renewable generation projects, from applicants that

4 are equity eligible contractors. The Agency may create

5 subcategories within this category to account for the

6 differences between project size and type. The Agency

7 shall propose to increase the percentage in this item

8 (vi) over time to 40% based on factors, including, but

9 not limited to, the number of equity eligible

10 contractors and capacity used in this item (vi) in

11 previous delivery years.

12 The Agency shall propose a payment structure for

13 contracts executed pursuant to this paragraph under

14 which, upon a demonstration of qualification or need,

15 applicant firms are advanced capital disbursed after

16 contract execution but before the contracted project's

17 energization. The amount or percentage of capital

18 advanced prior to project energization shall be

19 sufficient to both cover any increase in development

20 costs resulting from prevailing wage requirements or

21 project-labor agreements, and designed to overcome

22 barriers in access to capital faced by equity eligible

23 contractors. The amount or percentage of advanced

24 capital may vary by subcategory within this category

25 and by an applicant's demonstration of need, with such

26 levels to be established through the Long-Term

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1 Renewable Resources Procurement Plan authorized under

2 subparagraph (A) of paragraph (1) of subsection (c) of

3 this Section.

4 Contracts developed featuring capital advanced

5 prior to a project's energization shall feature

6 provisions to ensure both the successful development

7 of applicant projects and the delivery of the

8 renewable energy credits for the full term of the

9 contract, including ongoing collateral requirements

10 and other provisions deemed necessary by the Agency,

11 and may include energization timelines longer than for

12 comparable project types. The percentage or amount of

13 capital advanced prior to project energization shall

14 not operate to increase the overall contract value,

15 however contracts executed under this subparagraph may

16 feature renewable energy credit prices higher than

17 those offered to similar projects participating in

18 other categories. Capital advanced prior to

19 energization shall serve to reduce the ratable

20 payments made after energization under items (ii) and

21 (iii) of subparagraph (L) or payments made for each

22 renewable energy credit delivery under item (iv) of

23 subparagraph (L).

24 (vii) The remaining capacity shall be allocated by

25 the Agency in order to respond to market demand. The

26 Agency shall allocate any discretionary capacity prior

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1 to the beginning of each delivery year.

2 To the extent there is uncontracted capacity from any

3 block in any of categories (i) through (vi) at the end of a

4 delivery year, the Agency shall redistribute that capacity

5 to one or more other categories giving priority to

6 categories with projects on a waitlist. The redistributed

7 capacity shall be added to the annual capacity in the

8 subsequent delivery year, and the price for renewable

9 energy credits shall be the price for the new delivery

10 year. Redistributed capacity shall not be considered

11 redistributed when determining whether the goals in this

12 subsection (K) have been met.

13 Notwithstanding anything to the contrary, as the

14 Agency increases the capacity in item (vi) to 40% over

15 time, the Agency may reduce the capacity of items (i)

16 through (v) proportionate to the capacity of the

17 categories of projects in item (vi), to achieve a balance

18 of project types.

19 The Adjustable Block program shall be designed to

20 ensure that renewable energy credits are procured from

21 projects in diverse locations and are not concentrated in

22 a few regional areas.

23 (L) Notwithstanding provisions for advancing capital

24 prior to project energization found in item (vi) of

25 subparagraph (K), the procurement of photovoltaic

26 renewable energy credits under items (i) through (vi) of

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1 subparagraph (K) of this paragraph (1) shall otherwise be

2 subject to the following contract and payment terms:

3 (i) (Blank).

4 (ii) For those renewable energy credits that

5 qualify and are procured under item (i) of

6 subparagraph (K) of this paragraph (1), and any

7 similar category projects that are procured under item

8 (vi) of subparagraph (K) of this paragraph (1) that

9 qualify and are procured under item (vi), the contract

10 length shall be 15 years. The renewable energy credit

11 delivery contract value shall be paid in full, based

12 on the estimated generation during the first 15 years

13 of operation, by the contracting utilities at the time

14 that the facility producing the renewable energy

15 credits is interconnected at the distribution system

16 level of the utility and verified as energized and

17 compliant by the Program Administrator. The electric

18 utility shall receive and retire all renewable energy

19 credits generated by the project for the first 15

20 years of operation. Renewable energy credits generated

21 by the project thereafter shall not be transferred

22 under the renewable energy credit delivery contract

23 with the counterparty electric utility.

24 (iii) For those renewable energy credits that

25 qualify and are procured under item (ii) and (v) of

26 subparagraph (K) of this paragraph (1) and any like

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1 projects similar category that qualify and are

2 procured under item (vi), the contract length shall be

3 15 years. 15% of the renewable energy credit delivery

4 contract value, based on the estimated generation

5 during the first 15 years of operation, shall be paid

6 by the contracting utilities at the time that the

7 facility producing the renewable energy credits is

8 interconnected at the distribution system level of the

9 utility and verified as energized and compliant by the

10 Program Administrator. The remaining portion shall be

11 paid ratably over the subsequent 6-year period. The

12 electric utility shall receive and retire all

13 renewable energy credits generated by the project for

14 the first 15 years of operation. Renewable energy

15 credits generated by the project thereafter shall not

16 be transferred under the renewable energy credit

17 delivery contract with the counterparty electric

18 utility.

19 (iv) For those renewable energy credits that

20 qualify and are procured under items (iii) and (iv) of

21 subparagraph (K) of this paragraph (1), and any like

22 projects that qualify and are procured under item

23 (vi), the renewable energy credit delivery contract

24 length shall be 20 years and shall be paid over the

25 delivery term, not to exceed during each delivery year

26 the contract price multiplied by the estimated annual

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1 renewable energy credit generation amount. If

2 generation of renewable energy credits during a

3 delivery year exceeds the estimated annual generation

4 amount, the excess renewable energy credits shall be

5 carried forward to future delivery years and shall not

6 expire during the delivery term. If generation of

7 renewable energy credits during a delivery year,

8 including carried forward excess renewable energy

9 credits, if any, is less than the estimated annual

10 generation amount, payments during such delivery year

11 will not exceed the quantity generated plus the

12 quantity carried forward multiplied by the contract

13 price. The electric utility shall receive all

14 renewable energy credits generated by the project

15 during the first 20 years of operation and retire all

16 renewable energy credits paid for under this item (iv)

17 and return at the end of the delivery term all

18 renewable energy credits that were not paid for.

19 Renewable energy credits generated by the project

20 thereafter shall not be transferred under the

21 renewable energy credit delivery contract with the

22 counterparty electric utility. Notwithstanding the

23 preceding, for those projects participating under item

24 (iii) of subparagraph (K), the contract price for a

25 delivery year shall be based on subscription levels as

26 measured on the higher of the first business day of the

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1 delivery year or the first business day 6 months after

2 the first business day of the delivery year.

3 Subscription of 90% of nameplate capacity or greater

4 shall be deemed to be fully subscribed for the

5 purposes of this item (iv). For projects receiving a

6 20-year delivery contract, REC prices shall be

7 adjusted downward for consistency with the incentive

8 levels previously determined to be necessary to

9 support projects under 15-year delivery contracts,

10 taking into consideration any additional new

11 requirements placed on the projects, including, but

12 not limited to, labor standards.

13 (v) Each contract shall include provisions to

14 ensure the delivery of the estimated quantity of

15 renewable energy credits and ongoing collateral

16 requirements and other provisions deemed appropriate

17 by the Agency.

18 (vi) The utility shall be the counterparty to the

19 contracts executed under this subparagraph (L) that

20 are approved by the Commission under the process

21 described in Section 16-111.5 of the Public Utilities

22 Act. No contract shall be executed for an amount that

23 is less than one renewable energy credit per year.

24 (vii) If, at any time, approved applications for

25 the Adjustable Block program exceed funds collected by

26 the electric utility or would cause the Agency to

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1 exceed the limitation described in subparagraph (E) of

2 this paragraph (1) on the amount of renewable energy

3 resources that may be procured, then the Agency may

4 consider future uncommitted funds to be reserved for

5 these contracts on a first-come, first-served basis.

6 (viii) Nothing in this Section shall require the

7 utility to advance any payment or pay any amounts that

8 exceed the actual amount of revenues anticipated to be

9 collected by the utility under paragraph (6) of this

10 subsection (c) and subsection (k) of Section 16-108 of

11 the Public Utilities Act inclusive of eligible funds

12 collected in prior years and alternative compliance

13 payments for use by the utility, and contracts

14 executed under this Section shall expressly

15 incorporate this limitation.

16 (ix) Notwithstanding other requirements of this

17 subparagraph (L), no modification shall be required to

18 Adjustable Block program contracts if they were

19 already executed prior to the establishment, approval,

20 and implementation of new contract forms as a result

21 of this amendatory Act of the 102nd General Assembly.

22 (x) Contracts may be assignable, but only to

23 entities first deemed by the Agency to have met

24 program terms and requirements applicable to direct

25 program participation. In developing contracts for the

26 delivery of renewable energy credits, the Agency shall

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1 be permitted to establish fees applicable to each

2 contract assignment.

3 (M) The Agency shall be authorized to retain one or

4 more experts or expert consulting firms to develop,

5 administer, implement, operate, and evaluate the

6 Adjustable Block program described in subparagraph (K) of

7 this paragraph (1), and the Agency shall retain the

8 consultant or consultants in the same manner, to the

9 extent practicable, as the Agency retains others to

10 administer provisions of this Act, including, but not

11 limited to, the procurement administrator. The selection

12 of experts and expert consulting firms and the procurement

13 process described in this subparagraph (M) are exempt from

14 the requirements of Section 20-10 of the Illinois

15 Procurement Code, under Section 20-10 of that Code. The

16 Agency shall strive to minimize administrative expenses in

17 the implementation of the Adjustable Block program.

18 The Program Administrator may charge application fees

19 to participating firms to cover the cost of program

20 administration. Any application fee amounts shall

21 initially be determined through the long-term renewable

22 resources procurement plan, and modifications to any

23 application fee that deviate more than 25% from the

24 Commission's approved value must be approved by the

25 Commission as a long-term plan revision under Section

26 16-111.5 of the Public Utilities Act. The Agency shall

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1 consider stakeholder feedback when making adjustments to

2 application fees and shall notify stakeholders in advance

3 of any planned changes.

4 In addition to covering the costs of program

5 administration, the Agency, in conjunction with its

6 Program Administrator, may also use the proceeds of such

7 fees charged to participating firms to support public

8 education and ongoing regional and national coordination

9 with nonprofit organizations, public bodies, and others

10 engaged in the implementation of renewable energy

11 incentive programs or similar initiatives. This work may

12 include developing papers and reports, hosting regional

13 and national conferences, and other work deemed necessary

14 by the Agency to position the State of Illinois as a

15 national leader in renewable energy incentive program

16 development and administration.

17 The Agency and its consultant or consultants shall

18 monitor block activity, share program activity with

19 stakeholders and conduct quarterly meetings to discuss

20 program activity and market conditions. If necessary, the

21 Agency may make prospective administrative adjustments to

22 the Adjustable Block program design, such as making

23 adjustments to purchase prices as necessary to achieve the

24 goals of this subsection (c). Program modifications to any

25 block price that do not deviate from the Commission's

26 approved value by more than 10% shall take effect

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1 immediately and are not subject to Commission review and

2 approval. Program modifications to any block price that

3 deviate more than 10% from the Commission's approved value

4 must be approved by the Commission as a long-term plan

5 amendment under Section 16-111.5 of the Public Utilities

6 Act. The Agency shall consider stakeholder feedback when

7 making adjustments to the Adjustable Block design and

8 shall notify stakeholders in advance of any planned

9 changes.

10 The Agency and its program administrators for both the

11 Adjustable Block program and the Illinois Solar for All

12 Program, consistent with the requirements of this

13 subsection (c) and subsection (b) of Section 1-56 of this

14 Act, shall propose the Adjustable Block program terms,

15 conditions, and requirements, including the prices to be

16 paid for renewable energy credits, where applicable, and

17 requirements applicable to participating entities and

18 project applications, through the development, review, and

19 approval of the Agency's long-term renewable resources

20 procurement plan described in this subsection (c) and

21 paragraph (5) of subsection (b) of Section 16-111.5 of the

22 Public Utilities Act. Terms, conditions, and requirements

23 for program participation shall include the following:

24 (i) The Agency shall establish a registration

25 process for entities seeking to qualify for

26 program-administered incentive funding and establish

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1 baseline qualifications for vendor approval. The

2 Agency must maintain a list of approved entities on

3 each program's website, and may revoke a vendor's

4 ability to receive program-administered incentive

5 funding status upon a determination that the vendor

6 failed to comply with contract terms, the law, or

7 other program requirements.

8 (ii) The Agency shall establish program

9 requirements and minimum contract terms to ensure

10 projects are properly installed and produce their

11 expected amounts of energy. Program requirements may

12 include on-site inspections and photo documentation of

13 projects under construction. The Agency may require

14 repairs, alterations, or additions to remedy any

15 material deficiencies discovered. Vendors who have a

16 disproportionately high number of deficient systems

17 may lose their eligibility to continue to receive

18 State-administered incentive funding through Agency

19 programs and procurements.

20 (iii) To discourage deceptive marketing or other

21 bad faith business practices, the Agency may require

22 direct program participants, including agents

23 operating on their behalf, to provide standardized

24 disclosures to a customer prior to that customer's

25 execution of a contract for the development of a

26 distributed generation system or a subscription to a

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1 community solar project.

2 (iv) The Agency shall establish one or multiple

3 Consumer Complaints Centers to accept complaints

4 regarding businesses that participate in, or otherwise

5 benefit from, State-administered incentive funding

6 through Agency-administered programs. The Agency shall

7 maintain a public database of complaints with any

8 confidential or particularly sensitive information

9 redacted from public entries.

10 (v) Through a filing in the proceeding for the

11 approval of its long-term renewable energy resources

12 procurement plan, the Agency shall provide an annual

13 written report to the Illinois Commerce Commission

14 documenting the frequency and nature of complaints and

15 any enforcement actions taken in response to those

16 complaints.

17 (vi) The Agency shall schedule regular meetings

18 with representatives of the Office of the Attorney

19 General, the Illinois Commerce Commission, consumer

20 protection groups, and other interested stakeholders

21 to share relevant information about consumer

22 protection, project compliance, and complaints

23 received.

24 (vii) To the extent that complaints received

25 implicate the jurisdiction of the Office of the

26 Attorney General, the Illinois Commerce Commission, or

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1 local, State, or federal law enforcement, the Agency

2 shall also refer complaints to those entities as

3 appropriate.

4 (N) The Agency shall establish the terms, conditions,

5 and program requirements for photovoltaic community

6 renewable generation projects with a goal to expand access

7 to a broader group of energy consumers, to ensure robust

8 participation opportunities for residential and small

9 commercial customers and those who cannot install

10 renewable energy on their own properties. Subject to

11 reasonable limitations, any plan approved by the

12 Commission shall allow subscriptions to community

13 renewable generation projects to be portable and

14 transferable. For purposes of this subparagraph (N),

15 "portable" means that subscriptions may be retained by the

16 subscriber even if the subscriber relocates or changes its

17 address within the same utility service territory; and

18 "transferable" means that a subscriber may assign or sell

19 subscriptions to another person within the same utility

20 service territory.

21 Through the development of its long-term renewable

22 resources procurement plan, the Agency may consider

23 whether community renewable generation projects utilizing

24 technologies other than photovoltaics should be supported

25 through State-administered incentive funding, and may

26 issue requests for information to gauge market demand.

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1 Electric utilities shall provide a monetary credit to

2 a subscriber's subsequent bill for service for the

3 proportional output of a community renewable generation

4 project attributable to that subscriber as specified in

5 Section 16-107.5 of the Public Utilities Act.

6 The Agency shall purchase renewable energy credits

7 from subscribed shares of photovoltaic community renewable

8 generation projects through the Adjustable Block program

9 described in subparagraph (K) of this paragraph (1) or

10 through the Illinois Solar for All Program described in

11 Section 1-56 of this Act. The electric utility shall

12 purchase any unsubscribed energy from community renewable

13 generation projects that are Qualifying Facilities ("QF")

14 under the electric utility's tariff for purchasing the

15 output from QFs under Public Utilities Regulatory Policies

16 Act of 1978.

17 The owners of and any subscribers to a community

18 renewable generation project shall not be considered

19 public utilities or alternative retail electricity

20 suppliers under the Public Utilities Act solely as a

21 result of their interest in or subscription to a community

22 renewable generation project and shall not be required to

23 become an alternative retail electric supplier by

24 participating in a community renewable generation project

25 with a public utility.

26 (O) For the delivery year beginning June 1, 2018, the

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1 long-term renewable resources procurement plan required by

2 this subsection (c) shall provide for the Agency to

3 procure contracts to continue offering the Illinois Solar

4 for All Program described in subsection (b) of Section

5 1-56 of this Act, and the contracts approved by the

6 Commission shall be executed by the utilities that are

7 subject to this subsection (c). The long-term renewable

8 resources procurement plan shall allocate up to

9 $50,000,000 per delivery year to fund the programs, and

10 the plan shall determine the amount of funding to be

11 apportioned to the programs identified in subsection (b)

12 of Section 1-56 of this Act; provided that for the

13 delivery years beginning June 1, 2021, June 1, 2022, and

14 June 1, 2023, the long-term renewable resources

15 procurement plan may average the annual budgets over a

16 3-year period to account for program ramp-up. For the

17 delivery years beginning June 1, 2021, June 1, 2024, June

18 1, 2027, and June 1, 2030 and additional $10,000,000 shall

19 be provided to the Department of Commerce and Economic

20 Opportunity to implement the workforce development

21 programs and reporting as outlined in Section 16-108.12 of

22 the Public Utilities Act. In making the determinations

23 required under this subparagraph (O), the Commission shall

24 consider the experience and performance under the programs

25 and any evaluation reports. The Commission shall also

26 provide for an independent evaluation of those programs on

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1 a periodic basis that are funded under this subparagraph

2 (O).

3 (P) All programs and procurements under this

4 subsection (c) shall be designed to encourage

5 participating projects to use a diverse and equitable

6 workforce and a diverse set of contractors, including

7 minority-owned businesses, disadvantaged businesses,

8 trade unions, graduates of any workforce training programs

9 administered under this Act, and small businesses.

10 The Agency shall develop a method to optimize

11 procurement of renewable energy credits from proposed

12 utility-scale projects that are located in communities

13 eligible to receive Energy Transition Community Grants

14 pursuant to Section 10-20 of the Energy Community

15 Reinvestment Act. If this requirement conflicts with other

16 provisions of law or the Agency determines that full

17 compliance with the requirements of this subparagraph (P)

18 would be unreasonably costly or administratively

19 impractical, the Agency is to propose alternative

20 approaches to achieve development of renewable energy

21 resources in communities eligible to receive Energy

22 Transition Community Grants pursuant to Section 10-20 of

23 the Energy Community Reinvestment Act or seek an exemption

24 from this requirement from the Commission.

25 (Q) Each facility listed in subitems (i) through

26 (viii) of item (1) of this subparagraph (Q) for which a

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1 renewable energy credit delivery contract is signed after

2 the effective date of this amendatory Act of the 102nd

3 General Assembly is subject to the following requirements

4 through the Agency's long-term renewable resources

5 procurement plan:

6 (1) Each facility shall be subject to the

7 prevailing wage requirements included in the

8 Prevailing Wage Act. The Agency shall require

9 verification that all construction performed on the

10 facility by the renewable energy credit delivery

11 contract holder, its contractors, or its

12 subcontractors relating to construction of the

13 facility is performed by construction employees

14 receiving an amount for that work equal to or greater

15 than the general prevailing rate, as that term is

16 defined in Section 3 of the Prevailing Wage Act. For

17 purposes of this item (1), "house of worship" means

18 property that is both (1) used exclusively by a

19 religious society or body of persons as a place for

20 religious exercise or religious worship and (2)

21 recognized as exempt from taxation pursuant to Section

22 15-40 of the Property Tax Code. This item (1) shall

23 apply to any the following:

24 (i) all new utility-scale wind projects;

25 (ii) all new utility-scale photovoltaic

26 projects;

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1 (iii) all new brownfield photovoltaic

2 projects;

3 (iv) all new photovoltaic community renewable

4 energy facilities that qualify for item (iii) of

5 subparagraph (K) of this paragraph (1);

6 (v) all new community driven community

7 photovoltaic projects that qualify for item (v) of

8 subparagraph (K) of this paragraph (1);

9 (vi) all new photovoltaic projects on public

10 school land ~~distributed renewable energy~~

11 ~~generation devices on schools~~ that qualify for

12 item (iv) of subparagraph (K) of this paragraph

13 (1);

14 (vii) all new photovoltaic distributed

15 renewable energy generation devices that (1)

16 qualify for item (i) of subparagraph (K) of this

17 paragraph (1); (2) are not projects that serve

18 single-family or multi-family residential

19 buildings; and (3) are not houses of worship where

20 the aggregate capacity including collocated

21 projects would not exceed 100 kilowatts;

22 (viii) all new photovoltaic distributed

23 renewable energy generation devices that (1)

24 qualify for item (ii) of subparagraph (K) of this

25 paragraph (1); (2) are not projects that serve

26 single-family or multi-family residential

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1 buildings; and (3) are not houses of worship where

2 the aggregate capacity including collocated

3 projects would not exceed 100 kilowatts.

4 (2) Renewable energy credits procured from new

5 utility-scale wind projects, new utility-scale solar

6 projects, and new brownfield solar projects pursuant

7 to Agency procurement events occurring after the

8 effective date of this amendatory Act of the 102nd

9 General Assembly must be from facilities built by

10 general contractors that must enter into a project

11 labor agreement, as defined by this Act, prior to

12 construction. The project labor agreement shall be

13 filed with the Director in accordance with procedures

14 established by the Agency through its long-term

15 renewable resources procurement plan. Any information

16 submitted to the Agency in this item (2) shall be

17 considered commercially sensitive information. At a

18 minimum, the project labor agreement must provide the

19 names, addresses, and occupations of the owner of the

20 plant and the individuals representing the labor

21 organization employees participating in the project

22 labor agreement consistent with the Project Labor

23 Agreements Act. The agreement must also specify the

24 terms and conditions as defined by this Act.

25 (3) It is the intent of this Section to ensure that

26 economic development occurs across Illinois

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1 communities, that emerging businesses may grow, and

2 that there is improved access to the clean energy

3 economy by persons who have greater economic burdens

4 to success. The Agency shall take into consideration

5 the unique cost of compliance of this subparagraph (Q)

6 that might be borne by equity eligible contractors,

7 shall include such costs when determining the price of

8 renewable energy credits in the Adjustable Block

9 program, and shall take such costs into consideration

10 in a nondiscriminatory manner when comparing bids for

11 competitive procurements. The Agency shall consider

12 costs associated with compliance whether in the

13 development, financing, or construction of projects.

14 The Agency shall periodically review the assumptions

15 in these costs and may adjust prices, in compliance

16 with subparagraph (M) of this paragraph (1).

17 (R) In its long-term renewable resources procurement

18 plan, the Agency shall establish a self-direct renewable

19 portfolio standard compliance program for eligible

20 self-direct customers that purchase renewable energy

21 credits from utility-scale wind and solar projects through

22 long-term agreements for purchase of renewable energy

23 credits as described in this Section. Such long-term

24 agreements may include the purchase of energy or other

25 products on a physical or financial basis and may involve

26 an alternative retail electric supplier as defined in

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1 Section 16-102 of the Public Utilities Act. This program

2 shall take effect in the delivery year commencing June 1,

3 2023.

4 (1) For the purposes of this subparagraph:

5 "Eligible self-direct customer" means any retail

6 customers of an electric utility that serves 3,000,000

7 or more retail customers in the State and whose total

8 highest 30-minute demand was more than 10,000

9 kilowatts, or any retail customers of an electric

10 utility that serves less than 3,000,000 retail

11 customers but more than 500,000 retail customers in

12 the State and whose total highest 15-minute demand was

13 more than 10,000 kilowatts.

14 "Retail customer" has the meaning set forth in

15 Section 16-102 of the Public Utilities Act and

16 multiple retail customer accounts under the same

17 corporate parent may aggregate their account demands

18 to meet the 10,000 kilowatt threshold. The criteria

19 for determining whether this subparagraph is

20 applicable to a retail customer shall be based on the

21 12 consecutive billing periods prior to the start of

22 the year in which the application is filed.

23 (2) For renewable energy credits to count toward

24 the self-direct renewable portfolio standard

25 compliance program, they must:

26 (i) qualify as renewable energy credits as

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1 defined in Section 1-10 of this Act;

2 (ii) be sourced from one or more renewable

3 energy generating facilities that comply with the

4 geographic requirements as set forth in

5 subparagraph (I) of paragraph (1) of subsection

6 (c) as interpreted through the Agency's long-term

7 renewable resources procurement plan, or, where

8 applicable, the geographic requirements that

9 governed utility-scale renewable energy credits at

10 the time the eligible self-direct customer entered

11 into the applicable renewable energy credit

12 purchase agreement;

13 (iii) be procured through long-term contracts

14 with term lengths of at least 10 years either

15 directly with the renewable energy generating

16 facility or through a bundled power purchase

17 agreement, a virtual power purchase agreement, an

18 agreement between the renewable generating

19 facility, an alternative retail electric supplier,

20 and the customer, or such other structure as is

21 permissible under this subparagraph (R);

22 (iv) be equivalent in volume to at least 40%

23 of the eligible self-direct customer's usage,

24 determined annually by the eligible self-direct

25 customer's usage during the previous delivery

26 year, measured to the nearest megawatt-hour;

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1 (v) be retired by or on behalf of the large

2 energy customer;

3 (vi) be sourced from new utility-scale wind

4 projects or new utility-scale solar projects; and

5 (vii) if the contracts for renewable energy

6 credits are entered into after the effective date

7 of this amendatory Act of the 102nd General

8 Assembly, the new utility-scale wind projects or

9 new utility-scale solar projects must comply with

10 the requirements established in subparagraphs (P)

11 and (Q) of paragraph (1) of this subsection (c)

12 and subsection (c-10).

13 (3) The self-direct renewable portfolio standard

14 compliance program shall be designed to allow eligible

15 self-direct customers to procure new renewable energy

16 credits from new utility-scale wind projects or new

17 utility-scale photovoltaic projects. The Agency shall

18 annually determine the amount of utility-scale

19 renewable energy credits it will include each year

20 from the self-direct renewable portfolio standard

21 compliance program, subject to receiving qualifying

22 applications. In making this determination, the Agency

23 shall evaluate publicly available analyses and studies

24 of the potential market size for utility-scale

25 renewable energy long-term purchase agreements by

26 commercial and industrial energy customers and make

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1 that report publicly available. If demand for

2 participation in the self-direct renewable portfolio

3 standard compliance program exceeds availability, the

4 Agency shall ensure participation is evenly split

5 between commercial and industrial users to the extent

6 there is sufficient demand from both customer classes.

7 Each renewable energy credit procured pursuant to this

8 subparagraph (R) by a self-direct customer shall

9 reduce the total volume of renewable energy credits

10 the Agency is otherwise required to procure from new

11 utility-scale projects pursuant to subparagraph (C) of

12 paragraph (1) of this subsection (c) on behalf of

13 contracting utilities where the eligible self-direct

14 customer is located. The self-direct customer shall

15 file an annual compliance report with the Agency

16 pursuant to terms established by the Agency through

17 its long-term renewable resources procurement plan to

18 be eligible for participation in this program.

19 Customers must provide the Agency with their most

20 recent electricity billing statements or other

21 information deemed necessary by the Agency to

22 demonstrate they are an eligible self-direct customer.

23 (4) The Commission shall approve a reduction in

24 the volumetric charges collected pursuant to Section

25 16-108 of the Public Utilities Act for approved

26 eligible self-direct customers equivalent to the

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1 anticipated cost of renewable energy credit deliveries

2 under contracts for new utility-scale wind and new

3 utility-scale solar entered for each delivery year

4 after the large energy customer begins retiring

5 eligible new utility scale renewable energy credits

6 for self-compliance. The self-direct credit amount

7 shall be determined annually and is equal to the

8 estimated portion of the cost authorized by

9 subparagraph (E) of paragraph (1) of this subsection

10 (c) that supported the annual procurement of

11 utility-scale renewable energy credits in the prior

12 delivery year using a methodology described in the

13 long-term renewable resources procurement plan,

14 expressed on a per kilowatthour basis, and does not

15 include (i) costs associated with any contracts

16 entered into before the delivery year in which the

17 customer files the initial compliance report to be

18 eligible for participation in the self-direct program,

19 and (ii) costs associated with procuring renewable

20 energy credits through existing and future contracts

21 through the Adjustable Block Program, subsection (c-5)

22 of this Section 1-75, and the Solar for All Program.

23 The Agency shall assist the Commission in determining

24 the current and future costs. The Agency must

25 determine the self-direct credit amount for new and

26 existing eligible self-direct customers and submit

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1 this to the Commission in an annual compliance filing.

2 The Commission must approve the self-direct credit

3 amount by June 1, 2023 and June 1 of each delivery year

4 thereafter.

5 (5) Customers described in this subparagraph (R)

6 shall apply, on a form developed by the Agency, to the

7 Agency to be designated as a self-direct eligible

8 customer. Once the Agency determines that a

9 self-direct customer is eligible for participation in

10 the program, the self-direct customer will remain

11 eligible until the end of the term of the contract.

12 Thereafter, application may be made not less than 12

13 months before the filing date of the long-term

14 renewable resources procurement plan described in this

15 Act. At a minimum, such application shall contain the

16 following:

17 (i) the customer's certification that, at the

18 time of the customer's application, the customer

19 qualifies to be a self-direct eligible customer,

20 including documents demonstrating that

21 qualification;

22 (ii) the customer's certification that the

23 customer has entered into or will enter into by

24 the beginning of the applicable procurement year,

25 one or more bilateral contracts for new wind

26 projects or new photovoltaic projects, including

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1 supporting documentation;

2 (iii) certification that the contract or

3 contracts for new renewable energy resources are

4 long-term contracts with term lengths of at least

5 10 years, including supporting documentation;

6 (iv) certification of the quantities of

7 renewable energy credits that the customer will

8 purchase each year under such contract or

9 contracts, including supporting documentation;

10 (v) proof that the contract is sufficient to

11 produce renewable energy credits to be equivalent

12 in volume to at least 40% of the large energy

13 customer's usage from the previous delivery year,

14 measured to the nearest megawatt-hour; and

15 (vi) certification that the customer intends

16 to maintain the contract for the duration of the

17 length of the contract.

18 (6) If a customer receives the self-direct credit

19 but fails to properly procure and retire renewable

20 energy credits as required under this subparagraph

21 (R), the Commission, on petition from the Agency and

22 after notice and hearing, may direct such customer's

23 utility to recover the cost of the wrongfully received

24 self-direct credits plus interest through an adder to

25 charges assessed pursuant to Section 16-108 of the

26 Public Utilities Act. Self-direct customers who

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1 knowingly fail to properly procure and retire

2 renewable energy credits and do not notify the Agency

3 are ineligible for continued participation in the

4 self-direct renewable portfolio standard compliance

5 program.

6 (2) (Blank).

7 (3) (Blank).

8 (4) The electric utility shall retire all renewable

9 energy credits used to comply with the standard.

10 (5) Beginning with the 2010 delivery year and ending

11 June 1, 2017, an electric utility subject to this

12 subsection (c) shall apply the lesser of the maximum

13 alternative compliance payment rate or the most recent

14 estimated alternative compliance payment rate for its

15 service territory for the corresponding compliance period,

16 established pursuant to subsection (d) of Section 16-115D

17 of the Public Utilities Act to its retail customers that

18 take service pursuant to the electric utility's hourly

19 pricing tariff or tariffs. The electric utility shall

20 retain all amounts collected as a result of the

21 application of the alternative compliance payment rate or

22 rates to such customers, and, beginning in 2011, the

23 utility shall include in the information provided under

24 item (1) of subsection (d) of Section 16-111.5 of the

25 Public Utilities Act the amounts collected under the

26 alternative compliance payment rate or rates for the prior

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1 year ending May 31. Notwithstanding any limitation on the

2 procurement of renewable energy resources imposed by item

3 (2) of this subsection (c), the Agency shall increase its

4 spending on the purchase of renewable energy resources to

5 be procured by the electric utility for the next plan year

6 by an amount equal to the amounts collected by the utility

7 under the alternative compliance payment rate or rates in

8 the prior year ending May 31.

9 (6) The electric utility shall be entitled to recover

10 all of its costs associated with the procurement of

11 renewable energy credits under plans approved under this

12 Section and Section 16-111.5 of the Public Utilities Act.

13 These costs shall include associated reasonable expenses

14 for implementing the procurement programs, including, but

15 not limited to, the costs of administering and evaluating

16 the Adjustable Block program, through an automatic

17 adjustment clause tariff in accordance with subsection (k)

18 of Section 16-108 of the Public Utilities Act.

19 (7) Renewable energy credits procured from new

20 photovoltaic projects or new distributed renewable energy

21 generation devices under this Section after June 1, 2017

22 (the effective date of Public Act 99-906) must be procured

23 from devices installed by a qualified person in compliance

24 with the requirements of Section 16-128A of the Public

25 Utilities Act and any rules or regulations adopted

26 thereunder.

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1 In meeting the renewable energy requirements of this

2 subsection (c), to the extent feasible and consistent with

3 State and federal law, the renewable energy credit

4 procurements, Adjustable Block solar program, and

5 community renewable generation program shall provide

6 employment opportunities for all segments of the

7 population and workforce, including minority-owned and

8 female-owned business enterprises, and shall not,

9 consistent with State and federal law, discriminate based

10 on race or socioeconomic status.

11 (c-5) Procurement of renewable energy credits from new

12 renewable energy facilities installed at or adjacent to the

13 sites of electric generating facilities that burn or burned

14 coal as their primary fuel source.

15 (1) In addition to the procurement of renewable energy

16 credits pursuant to long-term renewable resources

17 procurement plans in accordance with subsection (c) of

18 this Section and Section 16-111.5 of the Public Utilities

19 Act, the Agency shall conduct procurement events in

20 accordance with this subsection (c-5) for the procurement

21 by electric utilities that served more than 300,000 retail

22 customers in this State as of January 1, 2019 of renewable

23 energy credits from new renewable energy facilities to be

24 installed at or adjacent to the sites of electric

25 generating facilities that, as of January 1, 2016, burned

26 coal as their primary fuel source and meet the other

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1 criteria specified in this subsection (c-5). For purposes

2 of this subsection (c-5), "new renewable energy facility"

3 means a new utility-scale solar project as defined in this

4 Section 1-75. The renewable energy credits procured

5 pursuant to this subsection (c-5) may be included or

6 counted for purposes of compliance with the amounts of

7 renewable energy credits required to be procured pursuant

8 to subsection (c) of this Section to the extent that there

9 are otherwise shortfalls in compliance with such

10 requirements. The procurement of renewable energy credits

11 by electric utilities pursuant to this subsection (c-5)

12 shall be funded solely by revenues collected from the Coal

13 to Solar and Energy Storage Initiative Charge provided for

14 in this subsection (c-5) and subsection (i-5) of Section

15 16-108 of the Public Utilities Act, shall not be funded by

16 revenues collected through any of the other funding

17 mechanisms provided for in subsection (c) of this Section,

18 and shall not be subject to the limitation imposed by

19 subsection (c) on charges to retail customers for costs to

20 procure renewable energy resources pursuant to subsection

21 (c), and shall not be subject to any other requirements or

22 limitations of subsection (c).

23 (2) The Agency shall conduct 2 procurement events to

24 select owners of electric generating facilities meeting

25 the eligibility criteria specified in this subsection

26 (c-5) to enter into long-term contracts to sell renewable

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1 energy credits to electric utilities serving more than

2 300,000 retail customers in this State as of January 1,

3 2019. The first procurement event shall be conducted no

4 later than March 31, 2022, unless the Agency elects to

5 delay it, until no later than May 1, 2022, due to its

6 overall volume of work, and shall be to select owners of

7 electric generating facilities located in this State and

8 south of federal Interstate Highway 80 that meet the

9 eligibility criteria specified in this subsection (c-5).

10 The second procurement event shall be conducted no sooner

11 than September 30, 2022 and no later than October 31, 2022

12 and shall be to select owners of electric generating

13 facilities located anywhere in this State that meet the

14 eligibility criteria specified in this subsection (c-5).

15 The Agency shall establish and announce a time period,

16 which shall begin no later than 30 days prior to the

17 scheduled date for the procurement event, during which

18 applicants may submit applications to be selected as

19 suppliers of renewable energy credits pursuant to this

20 subsection (c-5). The eligibility criteria for selection

21 as a supplier of renewable energy credits pursuant to this

22 subsection (c-5) shall be as follows:

23 (A) The applicant owns an electric generating

24 facility located in this State that: (i) as of January

25 1, 2016, burned coal as its primary fuel to generate

26 electricity; and (ii) has, or had prior to retirement,

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1 an electric generating capacity of at least 150

2 megawatts. The electric generating facility can be

3 either: (i) retired as of the date of the procurement

4 event; or (ii) still operating as of the date of the

5 procurement event.

6 (B) The applicant is not (i) an electric

7 cooperative as defined in Section 3-119 of the Public

8 Utilities Act, or (ii) an entity described in

9 subsection (b)(1) of Section 3-105 of the Public

10 Utilities Act, or an association or consortium of or

11 an entity owned by entities described in (i) or (ii);

12 and the coal-fueled electric generating facility was

13 at one time owned, in whole or in part, by a public

14 utility as defined in Section 3-105 of the Public

15 Utilities Act.

16 (C) If participating in the first procurement

17 event, the applicant proposes and commits to construct

18 and operate, at the site, and if necessary for

19 sufficient space on property adjacent to the existing

20 property, at which the electric generating facility

21 identified in paragraph (A) is located: (i) a new

22 renewable energy facility of at least 20 megawatts but

23 no more than 100 megawatts of electric generating

24 capacity, and (ii) an energy storage facility having a

25 storage capacity equal to at least 2 megawatts and at

26 most 10 megawatts. If participating in the second

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1 procurement event, the applicant proposes and commits

2 to construct and operate, at the site, and if

3 necessary for sufficient space on property adjacent to

4 the existing property, at which the electric

5 generating facility identified in paragraph (A) is

6 located: (i) a new renewable energy facility of at

7 least 5 megawatts but no more than 20 megawatts of

8 electric generating capacity, and (ii) an energy

9 storage facility having a storage capacity equal to at

10 least 0.5 megawatts and at most one megawatt.

11 (D) The applicant agrees that the new renewable

12 energy facility and the energy storage facility will

13 be constructed or installed by a qualified entity or

14 entities in compliance with the requirements of

15 subsection (g) of Section 16-128A of the Public

16 Utilities Act and any rules adopted thereunder.

17 (E) The applicant agrees that personnel operating

18 the new renewable energy facility and the energy

19 storage facility will have the requisite skills,

20 knowledge, training, experience, and competence, which

21 may be demonstrated by completion or current

22 participation and ultimate completion by employees of

23 an accredited or otherwise recognized apprenticeship

24 program for the employee's particular craft, trade, or

25 skill, including through training and education

26 courses and opportunities offered by the owner to

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1 employees of the coal-fueled electric generating

2 facility or by previous employment experience

3 performing the employee's particular work skill or

4 function.

5 (F) The applicant commits that not less than the

6 prevailing wage, as determined pursuant to the

7 Prevailing Wage Act, will be paid to the applicant's

8 employees engaged in construction activities

9 associated with the new renewable energy facility and

10 the new energy storage facility and to the employees

11 of applicant's contractors engaged in construction

12 activities associated with the new renewable energy

13 facility and the new energy storage facility, and

14 that, on or before the commercial operation date of

15 the new renewable energy facility, the applicant shall

16 file a report with the Agency certifying that the

17 requirements of this subparagraph (F) have been met.

18 (G) The applicant commits that if selected, it

19 will negotiate a project labor agreement for the

20 construction of the new renewable energy facility and

21 associated energy storage facility that includes

22 provisions requiring the parties to the agreement to

23 work together to establish diversity threshold

24 requirements and to ensure best efforts to meet

25 diversity targets, improve diversity at the applicable

26 job site, create diverse apprenticeship opportunities,

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1 and create opportunities to employ former coal-fired

2 power plant workers.

3 (H) The applicant commits to enter into a contract

4 or contracts for the applicable duration to provide

5 specified numbers of renewable energy credits each

6 year from the new renewable energy facility to

7 electric utilities that served more than 300,000

8 retail customers in this State as of January 1, 2019,

9 at a price of $30 per renewable energy credit. The

10 price per renewable energy credit shall be fixed at

11 $30 for the applicable duration and the renewable

12 energy credits shall not be indexed renewable energy

13 credits as provided for in item (v) of subparagraph

14 (G) of paragraph (1) of subsection (c) of Section 1-75

15 of this Act. The applicable duration of each contract

16 shall be 20 years, unless the applicant is physically

17 interconnected to the PJM Interconnection, LLC

18 transmission grid and had a generating capacity of at

19 least 1,200 megawatts as of January 1, 2021, in which

20 case the applicable duration of the contract shall be

21 15 years.

22 (I) The applicant's application is certified by an

23 officer of the applicant and by an officer of the

24 applicant's ultimate parent company, if any.

25 (3) An applicant may submit applications to contract

26 to supply renewable energy credits from more than one new

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1 renewable energy facility to be constructed at or adjacent

2 to one or more qualifying electric generating facilities

3 owned by the applicant. The Agency may select new

4 renewable energy facilities to be located at or adjacent

5 to the sites of more than one qualifying electric

6 generation facility owned by an applicant to contract with

7 electric utilities to supply renewable energy credits from

8 such facilities.

9 (4) The Agency shall assess fees to each applicant to

10 recover the Agency's costs incurred in receiving and

11 evaluating applications, conducting the procurement event,

12 developing contracts for sale, delivery and purchase of

13 renewable energy credits, and monitoring the

14 administration of such contracts, as provided for in this

15 subsection (c-5), including fees paid to a procurement

16 administrator retained by the Agency for one or more of

17 these purposes.

18 (5) The Agency shall select the applicants and the new

19 renewable energy facilities to contract with electric

20 utilities to supply renewable energy credits in accordance

21 with this subsection (c-5). In the first procurement

22 event, the Agency shall select applicants and new

23 renewable energy facilities to supply renewable energy

24 credits, at a price of $30 per renewable energy credit,

25 aggregating to no less than 400,000 renewable energy

26 credits per year for the applicable duration, assuming

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1 sufficient qualifying applications to supply, in the

2 aggregate, at least that amount of renewable energy

3 credits per year; and not more than 580,000 renewable

4 energy credits per year for the applicable duration. In

5 the second procurement event, the Agency shall select

6 applicants and new renewable energy facilities to supply

7 renewable energy credits, at a price of $30 per renewable

8 energy credit, aggregating to no more than 625,000

9 renewable energy credits per year less the amount of

10 renewable energy credits each year contracted for as a

11 result of the first procurement event, for the applicable

12 durations. The number of renewable energy credits to be

13 procured as specified in this paragraph (5) shall not be

14 reduced based on renewable energy credits procured in the

15 self-direct renewable energy credit compliance program

16 established pursuant to subparagraph (R) of paragraph (1)

17 of subsection (c) of Section 1-75.

18 (6) The obligation to purchase renewable energy

19 credits from the applicants and their new renewable energy

20 facilities selected by the Agency shall be allocated to

21 the electric utilities based on their respective

22 percentages of kilowatthours delivered to delivery

23 services customers to the aggregate kilowatthour

24 deliveries by the electric utilities to delivery services

25 customers for the year ended December 31, 2021. In order

26 to achieve these allocation percentages between or among

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1 the electric utilities, the Agency shall require each

2 applicant that is selected in the procurement event to

3 enter into a contract with each electric utility for the

4 sale and purchase of renewable energy credits from each

5 new renewable energy facility to be constructed and

6 operated by the applicant, with the sale and purchase

7 obligations under the contracts to aggregate to the total

8 number of renewable energy credits per year to be supplied

9 by the applicant from the new renewable energy facility.

10 (7) The Agency shall submit its proposed selection of

11 applicants, new renewable energy facilities to be

12 constructed, and renewable energy credit amounts for each

13 procurement event to the Commission for approval. The

14 Commission shall, within 2 business days after receipt of

15 the Agency's proposed selections, approve the proposed

16 selections if it determines that the applicants and the

17 new renewable energy facilities to be constructed meet the

18 selection criteria set forth in this subsection (c-5) and

19 that the Agency seeks approval for contracts of applicable

20 durations aggregating to no more than the maximum amount

21 of renewable energy credits per year authorized by this

22 subsection (c-5) for the procurement event, at a price of

23 $30 per renewable energy credit.

24 (8) The Agency, in conjunction with its procurement

25 administrator if one is retained, the electric utilities,

26 and potential applicants for contracts to produce and

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1 supply renewable energy credits pursuant to this

2 subsection (c-5), shall develop a standard form contract

3 for the sale, delivery and purchase of renewable energy

4 credits pursuant to this subsection (c-5). Each contract

5 resulting from the first procurement event shall allow for

6 a commercial operation date for the new renewable energy

7 facility of either June 1, 2023 or June 1, 2024, with such

8 dates subject to adjustment as provided in this paragraph.

9 Each contract resulting from the second procurement event

10 shall provide for a commercial operation date on June 1

11 next occurring up to 48 months after execution of the

12 contract. Each contract shall provide that the owner shall

13 receive payments for renewable energy credits for the

14 applicable durations beginning with the commercial

15 operation date of the new renewable energy facility. The

16 form contract shall provide for adjustments to the

17 commercial operation and payment start dates as needed due

18 to any delays in completing the procurement and

19 contracting processes, in finalizing interconnection

20 agreements and installing interconnection facilities, and

21 in obtaining other necessary governmental permits and

22 approvals. The form contract shall be, to the maximum

23 extent possible, consistent with standard electric

24 industry contracts for sale, delivery, and purchase of

25 renewable energy credits while taking into account the

26 specific requirements of this subsection (c-5). The form

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1 contract shall provide for over-delivery and

2 under-delivery of renewable energy credits within

3 reasonable ranges during each 12-month period and penalty,

4 default, and enforcement provisions for failure of the

5 selling party to deliver renewable energy credits as

6 specified in the contract and to comply with the

7 requirements of this subsection (c-5). The standard form

8 contract shall specify that all renewable energy credits

9 delivered to the electric utility pursuant to the contract

10 shall be retired. The Agency shall make the proposed

11 contracts available for a reasonable period for comment by

12 potential applicants, and shall publish the final form

13 contract at least 30 days before the date of the first

14 procurement event.

15 (9) Coal to Solar and Energy Storage Initiative

16 Charge.

17 (A) By no later than July 1, 2022, each electric

18 utility that served more than 300,000 retail customers

19 in this State as of January 1, 2019 shall file a tariff

20 with the Commission for the billing and collection of

21 a Coal to Solar and Energy Storage Initiative Charge

22 in accordance with subsection (i-5) of Section 16-108

23 of the Public Utilities Act, with such tariff to be

24 effective, following review and approval or

25 modification by the Commission, beginning January 1,

26 2023. The tariff shall provide for the calculation and

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1 setting of the electric utility's Coal to Solar and

2 Energy Storage Initiative Charge to collect revenues

3 estimated to be sufficient, in the aggregate, (i) to

4 enable the electric utility to pay for the renewable

5 energy credits it has contracted to purchase in the

6 delivery year beginning June 1, 2023 and each delivery

7 year thereafter from new renewable energy facilities

8 located at the sites of qualifying electric generating

9 facilities, and (ii) to fund the grant payments to be

10 made in each delivery year by the Department of

11 Commerce and Economic Opportunity, or any successor

12 department or agency, which shall be referred to in

13 this subsection (c-5) as the Department, pursuant to

14 paragraph (10) of this subsection (c-5). The electric

15 utility's tariff shall provide for the billing and

16 collection of the Coal to Solar and Energy Storage

17 Initiative Charge on each kilowatthour of electricity

18 delivered to its delivery services customers within

19 its service territory and shall provide for an annual

20 reconciliation of revenues collected with actual

21 costs, in accordance with subsection (i-5) of Section

22 16-108 of the Public Utilities Act.

23 (B) Each electric utility shall remit on a monthly

24 basis to the State Treasurer, for deposit in the Coal

25 to Solar and Energy Storage Initiative Fund provided

26 for in this subsection (c-5), the electric utility's

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1 collections of the Coal to Solar and Energy Storage

2 Initiative Charge in the amount estimated to be needed

3 by the Department for grant payments pursuant to grant

4 contracts entered into by the Department pursuant to

5 paragraph (10) of this subsection (c-5).

6 (10) Coal to Solar and Energy Storage Initiative Fund.

7 (A) The Coal to Solar and Energy Storage

8 Initiative Fund is established as a special fund in

9 the State treasury. The Coal to Solar and Energy

10 Storage Initiative Fund is authorized to receive, by

11 statutory deposit, that portion specified in item (B)

12 of paragraph (9) of this subsection (c-5) of moneys

13 collected by electric utilities through imposition of

14 the Coal to Solar and Energy Storage Initiative Charge

15 required by this subsection (c-5). The Coal to Solar

16 and Energy Storage Initiative Fund shall be

17 administered by the Department to provide grants to

18 support the installation and operation of energy

19 storage facilities at the sites of qualifying electric

20 generating facilities meeting the criteria specified

21 in this paragraph (10).

22 (B) The Coal to Solar and Energy Storage

23 Initiative Fund shall not be subject to sweeps,

24 administrative charges, or chargebacks, including, but

25 not limited to, those authorized under Section 8h of

26 the State Finance Act, that would in any way result in

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1 the transfer of those funds from the Coal to Solar and

2 Energy Storage Initiative Fund to any other fund of

3 this State or in having any such funds utilized for any

4 purpose other than the express purposes set forth in

5 this paragraph (10).

6 (C) The Department shall utilize up to

7 $280,500,000 in the Coal to Solar and Energy Storage

8 Initiative Fund for grants, assuming sufficient

9 qualifying applicants, to support installation of

10 energy storage facilities at the sites of up to 3

11 qualifying electric generating facilities located in

12 the Midcontinent Independent System Operator, Inc.,

13 region in Illinois and the sites of up to 2 qualifying

14 electric generating facilities located in the PJM

15 Interconnection, LLC region in Illinois that meet the

16 criteria set forth in this subparagraph (C). The

17 criteria for receipt of a grant pursuant to this

18 subparagraph (C) are as follows:

19 (1) the electric generating facility at the

20 site has, or had prior to retirement, an electric

21 generating capacity of at least 150 megawatts;

22 (2) the electric generating facility burns (or

23 burned prior to retirement) coal as its primary

24 source of fuel;

25 (3) if the electric generating facility is

26 retired, it was retired subsequent to January 1,

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1 2016;

2 (4) the owner of the electric generating

3 facility has not been selected by the Agency

4 pursuant to this subsection (c-5) of this Section

5 to enter into a contract to sell renewable energy

6 credits to one or more electric utilities from a

7 new renewable energy facility located or to be

8 located at or adjacent to the site at which the

9 electric generating facility is located;

10 (5) the electric generating facility located

11 at the site was at one time owned, in whole or in

12 part, by a public utility as defined in Section

13 3-105 of the Public Utilities Act;

14 (6) the electric generating facility at the

15 site is not owned by (i) an electric cooperative

16 as defined in Section 3-119 of the Public

17 Utilities Act, or (ii) an entity described in

18 subsection (b)(1) of Section 3-105 of the Public

19 Utilities Act, or an association or consortium of

20 or an entity owned by entities described in items

21 (i) or (ii);

22 (7) the proposed energy storage facility at

23 the site will have energy storage capacity of at

24 least 37 megawatts;

25 (8) the owner commits to place the energy

26 storage facility into commercial operation on

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1 either June 1, 2023, June 1, 2024, or June 1, 2025,

2 with such date subject to adjustment as needed due

3 to any delays in completing the grant contracting

4 process, in finalizing interconnection agreements

5 and in installing interconnection facilities, and

6 in obtaining necessary governmental permits and

7 approvals;

8 (9) the owner agrees that the new energy

9 storage facility will be constructed or installed

10 by a qualified entity or entities consistent with

11 the requirements of subsection (g) of Section

12 16-128A of the Public Utilities Act and any rules

13 adopted under that Section;

14 (10) the owner agrees that personnel operating

15 the energy storage facility will have the

16 requisite skills, knowledge, training, experience,

17 and competence, which may be demonstrated by

18 completion or current participation and ultimate

19 completion by employees of an accredited or

20 otherwise recognized apprenticeship program for

21 the employee's particular craft, trade, or skill,

22 including through training and education courses

23 and opportunities offered by the owner to

24 employees of the coal-fueled electric generating

25 facility or by previous employment experience

26 performing the employee's particular work skill or

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1 function;

2 (11) the owner commits that not less than the

3 prevailing wage, as determined pursuant to the

4 Prevailing Wage Act, will be paid to the owner's

5 employees engaged in construction activities

6 associated with the new energy storage facility

7 and to the employees of the owner's contractors

8 engaged in construction activities associated with

9 the new energy storage facility, and that, on or

10 before the commercial operation date of the new

11 energy storage facility, the owner shall file a

12 report with the Department certifying that the

13 requirements of this subparagraph (11) have been

14 met; and

15 (12) the owner commits that if selected to

16 receive a grant, it will negotiate a project labor

17 agreement for the construction of the new energy

18 storage facility that includes provisions

19 requiring the parties to the agreement to work

20 together to establish diversity threshold

21 requirements and to ensure best efforts to meet

22 diversity targets, improve diversity at the

23 applicable job site, create diverse apprenticeship

24 opportunities, and create opportunities to employ

25 former coal-fired power plant workers.

26 The Department shall accept applications for this

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1 grant program until March 31, 2022 and shall announce

2 the award of grants no later than June 1, 2022. The

3 Department shall make the grant payments to a

4 recipient in equal annual amounts for 10 years

5 following the date the energy storage facility is

6 placed into commercial operation. The annual grant

7 payments to a qualifying energy storage facility shall

8 be $110,000 per megawatt of energy storage capacity,

9 with total annual grant payments pursuant to this

10 subparagraph (C) for qualifying energy storage

11 facilities not to exceed $28,050,000 in any year.

12 (D) Grants of funding for energy storage

13 facilities pursuant to subparagraph (C) of this

14 paragraph (10), from the Coal to Solar and Energy

15 Storage Initiative Fund, shall be memorialized in

16 grant contracts between the Department and the

17 recipient. The grant contracts shall specify the date

18 or dates in each year on which the annual grant

19 payments shall be paid.

20 (E) All disbursements from the Coal to Solar and

21 Energy Storage Initiative Fund shall be made only upon

22 warrants of the Comptroller drawn upon the Treasurer

23 as custodian of the Fund upon vouchers signed by the

24 Director of the Department or by the person or persons

25 designated by the Director of the Department for that

26 purpose. The Comptroller is authorized to draw the

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1 warrants upon vouchers so signed. The Treasurer shall

2 accept all written warrants so signed and shall be

3 released from liability for all payments made on those

4 warrants.

5 (11) Diversity, equity, and inclusion plans.

6 (A) Each applicant selected in a procurement event

7 to contract to supply renewable energy credits in

8 accordance with this subsection (c-5) and each owner

9 selected by the Department to receive a grant or

10 grants to support the construction and operation of a

11 new energy storage facility or facilities in

12 accordance with this subsection (c-5) shall, within 60

13 days following the Commission's approval of the

14 applicant to contract to supply renewable energy

15 credits or within 60 days following execution of a

16 grant contract with the Department, as applicable,

17 submit to the Commission a diversity, equity, and

18 inclusion plan setting forth the applicant's or

19 owner's numeric goals for the diversity composition of

20 its supplier entities for the new renewable energy

21 facility or new energy storage facility, as

22 applicable, which shall be referred to for purposes of

23 this paragraph (11) as the project, and the

24 applicant's or owner's action plan and schedule for

25 achieving those goals.

26 (B) For purposes of this paragraph (11), diversity

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1 composition shall be based on the percentage, which

2 shall be a minimum of 25%, of eligible expenditures

3 for contract awards for materials and services (which

4 shall be defined in the plan) to business enterprises

5 owned by minority persons, women, or persons with

6 disabilities as defined in Section 2 of the Business

7 Enterprise for Minorities, Women, and Persons with

8 Disabilities Act, to LGBTQ business enterprises, to

9 veteran-owned business enterprises, and to business

10 enterprises located in environmental justice

11 communities. The diversity composition goals of the

12 plan may include eligible expenditures in areas for

13 vendor or supplier opportunities in addition to

14 development and construction of the project, and may

15 exclude from eligible expenditures materials and

16 services with limited market availability, limited

17 production and availability from suppliers in the

18 United States, such as solar panels and storage

19 batteries, and material and services that are subject

20 to critical energy infrastructure or cybersecurity

21 requirements or restrictions. The plan may provide

22 that the diversity composition goals may be met

23 through Tier 1 Direct or Tier 2 subcontracting

24 expenditures or a combination thereof for the project.

25 (C) The plan shall provide for, but not be limited

26 to: (i) internal initiatives, including multi-tier

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1 initiatives, by the applicant or owner, or by its

2 engineering, procurement and construction contractor

3 if one is used for the project, which for purposes of

4 this paragraph (11) shall be referred to as the EPC

5 contractor, to enable diverse businesses to be

6 considered fairly for selection to provide materials

7 and services; (ii) requirements for the applicant or

8 owner or its EPC contractor to proactively solicit and

9 utilize diverse businesses to provide materials and

10 services; and (iii) requirements for the applicant or

11 owner or its EPC contractor to hire a diverse

12 workforce for the project. The plan shall include a

13 description of the applicant's or owner's diversity

14 recruiting efforts both for the project and for other

15 areas of the applicant's or owner's business

16 operations. The plan shall provide for the imposition

17 of financial penalties on the applicant's or owner's

18 EPC contractor for failure to exercise best efforts to

19 comply with and execute the EPC contractor's diversity

20 obligations under the plan. The plan may provide for

21 the applicant or owner to set aside a portion of the

22 work on the project to serve as an incubation program

23 for qualified businesses, as specified in the plan,

24 owned by minority persons, women, persons with

25 disabilities, LGBTQ persons, and veterans, and

26 businesses located in environmental justice

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1 communities, seeking to enter the renewable energy

2 industry.

3 (D) The applicant or owner may submit a revised or

4 updated plan to the Commission from time to time as

5 circumstances warrant. The applicant or owner shall

6 file annual reports with the Commission detailing the

7 applicant's or owner's progress in implementing its

8 plan and achieving its goals and any modifications the

9 applicant or owner has made to its plan to better

10 achieve its diversity, equity and inclusion goals. The

11 applicant or owner shall file a final report on the

12 fifth June 1 following the commercial operation date

13 of the new renewable energy resource or new energy

14 storage facility, but the applicant or owner shall

15 thereafter continue to be subject to applicable

16 reporting requirements of Section 5-117 of the Public

17 Utilities Act.

18 (c-10) Equity accountability system. It is the purpose of

19 this subsection (c-10) to create an equity accountability

20 system, which includes the minimum equity standards for all

21 renewable energy procurements, the equity category of the

22 Adjustable Block Program, and the equity prioritization for

23 noncompetitive procurements, that is successful in advancing

24 priority access to the clean energy economy for businesses and

25 workers from communities that have been excluded from economic

26 opportunities in the energy sector, have been subject to

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1 disproportionate levels of pollution, and have

2 disproportionately experienced negative public health

3 outcomes. Further, it is the purpose of this subsection to

4 ensure that this equity accountability system is successful in

5 advancing equity across Illinois by providing access to the

6 clean energy economy for businesses and workers from

7 communities that have been historically excluded from economic

8 opportunities in the energy sector, have been subject to

9 disproportionate levels of pollution, and have

10 disproportionately experienced negative public health

11 outcomes.

12 (1) Minimum equity standards. The Agency shall create

13 programs with the purpose of increasing access to and

14 development of equity eligible contractors, who are prime

15 contractors and subcontractors, across all of the programs

16 it manages. All applications for renewable energy credit

17 procurements shall comply with specific minimum equity

18 commitments. Starting in the delivery year immediately

19 following the next long-term renewable resources

20 procurement plan, at least 10% of the project workforce

21 for each entity participating in a procurement program

22 outlined in this subsection (c-10) must be done by equity

23 eligible persons or equity eligible contractors. The

24 Agency shall increase the minimum percentage each delivery

25 year thereafter by increments that ensure a statewide

26 average of 30% of the project workforce for each entity

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1 participating in a procurement program is done by equity

2 eligible persons or equity eligible contractors by 2030.

3 The Agency shall propose a schedule of percentage

4 increases to the minimum equity standards in its draft

5 revised renewable energy resources procurement plan

6 submitted to the Commission for approval pursuant to

7 paragraph (5) of subsection (b) of Section 16-111.5 of the

8 Public Utilities Act. In determining these annual

9 increases, the Agency shall have the discretion to

10 establish different minimum equity standards for different

11 types of procurements and different regions of the State

12 if the Agency finds that doing so will further the

13 purposes of this subsection (c-10). The proposed schedule

14 of annual increases shall be revisited and updated on an

15 annual basis. Revisions shall be developed with

16 stakeholder input, including from equity eligible persons,

17 equity eligible contractors, clean energy industry

18 representatives, and community-based organizations that

19 work with such persons and contractors.

20 (A) At the start of each delivery year, the Agency

21 shall require a compliance plan from each entity

22 participating in a procurement program of subsection

23 (c) of this Section that demonstrates how they will

24 achieve compliance with the minimum equity standard

25 percentage for work completed in that delivery year.

26 If an entity applies for its approved vendor or

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1 designee status between delivery years, the Agency

2 shall require a compliance plan at the time of

3 application.

4 (B) Halfway through each delivery year, the Agency

5 shall require each entity participating in a

6 procurement program to confirm that it will achieve

7 compliance in that delivery year, when applicable. The

8 Agency may offer corrective action plans to entities

9 that are not on track to achieve compliance.

10 (C) At the end of each delivery year, each entity

11 participating and completing work in that delivery

12 year in a procurement program of subsection (c) shall

13 submit a report to the Agency that demonstrates how it

14 achieved compliance with the minimum equity standards

15 percentage for that delivery year.

16 (D) The Agency shall prohibit participation in

17 procurement programs by an approved vendor or

18 designee, as applicable, or entities with which an

19 approved vendor or designee, as applicable, shares a

20 common parent company if an approved vendor or

21 designee, as applicable, failed to meet the minimum

22 equity standards for the prior delivery year. Waivers

23 approved for lack of equity eligible persons or equity

24 eligible contractors in a geographic area of a project

25 shall not count against the approved vendor or

26 designee. The Agency shall offer a corrective action

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1 plan for any such entities to assist them in obtaining

2 compliance and shall allow continued access to

3 procurement programs upon an approved vendor or

4 designee demonstrating compliance.

5 (E) The Agency shall pursue efficiencies achieved

6 by combining with other approved vendor or designee

7 reporting.

8 (2) Equity accountability system within the Adjustable

9 Block program. The equity category described in item (vi)

10 of subparagraph (K) of subsection (c) is only available to

11 applicants that are equity eligible contractors.

12 (3) Equity accountability system within competitive

13 procurements. Through its long-term renewable resources

14 procurement plan, the Agency shall develop requirements

15 for ensuring that competitive procurement processes,

16 including utility-scale solar, utility-scale wind, and

17 brownfield site photovoltaic projects, advance the equity

18 goals of this subsection (c-10). Subject to Commission

19 approval, the Agency shall develop bid application

20 requirements and a bid evaluation methodology for ensuring

21 that utilization of equity eligible contractors, whether

22 as bidders or as participants on project development, is

23 optimized, including requiring that winning or successful

24 applicants for utility-scale projects are or will partner

25 with equity eligible contractors and giving preference to

26 bids through which a higher portion of contract value

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1 flows to equity eligible contractors. To the extent

2 practicable, entities participating in competitive

3 procurements shall also be required to meet all the equity

4 accountability requirements for approved vendors and their

5 designees under this subsection (c-10). In developing

6 these requirements, the Agency shall also consider whether

7 equity goals can be further advanced through additional

8 measures.

9 (4) In the first revision to the long-term renewable

10 energy resources procurement plan and each revision

11 thereafter, the Agency shall include the following:

12 (A) The current status and number of equity

13 eligible contractors listed in the Energy Workforce

14 Equity Database designed in subsection (c-25),

15 including the number of equity eligible contractors

16 with current certifications as issued by the Agency.

17 (B) A mechanism for measuring, tracking, and

18 reporting project workforce at the approved vendor or

19 designee level, as applicable, which shall include a

20 measurement methodology and records to be made

21 available for audit by the Agency or the Program

22 Administrator.

23 (C) A program for approved vendors, designees,

24 eligible persons, and equity eligible contractors to

25 receive trainings, guidance, and other support from

26 the Agency or its designee regarding the equity

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1 category outlined in item (vi) of subparagraph (K) of

2 paragraph (1) of subsection (c) and in meeting the

3 minimum equity standards of this subsection (c-10).

4 (D) A process for certifying equity eligible

5 contractors and equity eligible persons. The

6 certification process shall coordinate with the Energy

7 Workforce Equity Database set forth in subsection

8 (c-25).

9 (E) An application for waiver of the minimum

10 equity standards of this subsection, which the Agency

11 shall have the discretion to grant in rare

12 circumstances. The Agency may grant such a waiver

13 where the applicant provides evidence of significant

14 efforts toward meeting the minimum equity commitment,

15 including: use of the Energy Workforce Equity

16 Database; efforts to hire or contract with entities

17 that hire eligible persons; and efforts to establish

18 contracting relationships with eligible contractors.

19 The Agency shall support applicants in understanding

20 the Energy Workforce Equity Database and other

21 resources for pursuing compliance of the minimum

22 equity standards. Waivers shall be project-specific,

23 unless the Agency deems it necessary to grant a waiver

24 across a portfolio of projects, and in effect for no

25 longer than one year. Any waiver extension or

26 subsequent waiver request from an applicant shall be

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1 subject to the requirements of this Section and shall

2 specify efforts made to reach compliance. When

3 considering whether to grant a waiver, and to what

4 extent, the Agency shall consider the degree to which

5 similarly situated applicants have been able to meet

6 these minimum equity commitments. For repeated waiver

7 requests for specific lack of eligible persons or

8 eligible contractors available, the Agency shall make

9 recommendations to target recruitment to add such

10 eligible persons or eligible contractors to the

11 database.

12 (5) The Agency shall collect information about work on

13 projects or portfolios of projects subject to these

14 minimum equity standards to ensure compliance with this

15 subsection (c-10). Reporting in furtherance of this

16 requirement may be combined with other annual reporting

17 requirements. Such reporting shall include proof of

18 certification of each equity eligible contractor or equity

19 eligible person during the applicable time period.

20 (6) The Agency shall keep confidential all information

21 and communication that provides private or personal

22 information.

23 (7) Modifications to the equity accountability system.

24 As part of the update of the long-term renewable resources

25 procurement plan to be initiated in 2023, or sooner if the

26 Agency deems necessary, the Agency shall determine the

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1 extent to which the equity accountability system described

2 in this subsection (c-10) has advanced the goals of this

3 amendatory Act of the 102nd General Assembly, including

4 through the inclusion of equity eligible persons and

5 equity eligible contractors in renewable energy credit

6 projects. If the Agency finds that the equity

7 accountability system has failed to meet those goals to

8 its fullest potential, the Agency may revise the following

9 criteria for future Agency procurements: (A) the

10 percentage of project workforce, or other appropriate

11 workforce measure, certified as equity eligible persons or

12 equity eligible contractors; (B) definitions for equity

13 investment eligible persons and equity investment eligible

14 community; and (C) such other modifications necessary to

15 advance the goals of this amendatory Act of the 102nd

16 General Assembly effectively. Such revised criteria may

17 also establish distinct equity accountability systems for

18 different types of procurements or different regions of

19 the State if the Agency finds that doing so will further

20 the purposes of such programs. Revisions shall be

21 developed with stakeholder input, including from equity

22 eligible persons, equity eligible contractors, and

23 community-based organizations that work with such persons

24 and contractors.

25 (c-15) Racial discrimination elimination powers and

26 process.

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1 (1) Purpose. It is the purpose of this subsection to

2 empower the Agency and other State actors to remedy racial

3 discrimination in Illinois' clean energy economy as

4 effectively and expediently as possible, including through

5 the use of race-conscious remedies, such as race-conscious

6 contracting and hiring goals, as consistent with State and

7 federal law.

8 (2) Racial disparity and discrimination review

9 process.

10 (A) Within one year after awarding contracts using

11 the equity actions processes established in this

12 Section, the Agency shall publish a report evaluating

13 the effectiveness of the equity actions point criteria

14 of this Section in increasing participation of equity

15 eligible persons and equity eligible contractors. The

16 report shall disaggregate participating workers and

17 contractors by race and ethnicity. The report shall be

18 forwarded to the Governor, the General Assembly, and

19 the Illinois Commerce Commission and be made available

20 to the public.

21 (B) As soon as is practicable thereafter, the

22 Agency, in consultation with the Department of

23 Commerce and Economic Opportunity, Department of

24 Labor, and other agencies that may be relevant, shall

25 commission and publish a disparity and availability

26 study that measures the presence and impact of

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1 discrimination on minority businesses and workers in

2 Illinois' clean energy economy. The Agency may hire

3 consultants and experts to conduct the disparity and

4 availability study, with the retention of those

5 consultants and experts exempt from the requirements

6 of Section 20-10 of the Illinois Procurement Code. The

7 Illinois Power Agency shall forward a copy of its

8 findings and recommendations to the Governor, the

9 General Assembly, and the Illinois Commerce

10 Commission. If the disparity and availability study

11 establishes a strong basis in evidence that there is

12 discrimination in Illinois' clean energy economy, the

13 Agency, Department of Commerce and Economic

14 Opportunity, Department of Labor, Department of

15 Corrections, and other appropriate agencies shall take

16 appropriate remedial actions, including race-conscious

17 remedial actions as consistent with State and federal

18 law, to effectively remedy this discrimination. Such

19 remedies may include modification of the equity

20 accountability system as described in subsection

21 (c-10).

22 (c-20) Program data collection.

23 (1) Purpose. Data collection, data analysis, and

24 reporting are critical to ensure that the benefits of the

25 clean energy economy provided to Illinois residents and

26 businesses are equitably distributed across the State. The

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1 Agency shall collect data from program applicants in order

2 to track and improve equitable distribution of benefits

3 across Illinois communities for all procurements the

4 Agency conducts. The Agency shall use this data to, among

5 other things, measure any potential impact of racial

6 discrimination on the distribution of benefits and provide

7 information necessary to correct any discrimination

8 through methods consistent with State and federal law.

9 (2) Agency collection of program data. The Agency

10 shall collect demographic and geographic data for each

11 entity awarded contracts under any Agency-administered

12 program.

13 (3) Required information to be collected. The Agency

14 shall collect the following information from applicants

15 and program participants where applicable:

16 (A) demographic information, including racial or

17 ethnic identity for real persons employed, contracted,

18 or subcontracted through the program and owners of

19 businesses or entities that apply to receive renewable

20 energy credits from the Agency;

21 (B) geographic location of the residency of real

22 persons employed, contracted, or subcontracted through

23 the program and geographic location of the

24 headquarters of the business or entity that applies to

25 receive renewable energy credits from the Agency; and

26 (C) any other information the Agency determines is

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1 necessary for the purpose of achieving the purpose of

2 this subsection.

3 (4) Publication of collected information. The Agency

4 shall publish, at least annually, information on the

5 demographics of program participants on an aggregate

6 basis.

7 (5) Nothing in this subsection shall be interpreted to

8 limit the authority of the Agency, or other agency or

9 department of the State, to require or collect demographic

10 information from applicants of other State programs.

11 (c-25) Energy Workforce Equity Database.

12 (1) The Agency, in consultation with the Department of

13 Commerce and Economic Opportunity, shall create an Energy

14 Workforce Equity Database, and may contract with a third

15 party to do so ("database program administrator"). If the

16 Department decides to contract with a third party, that

17 third party shall be exempt from the requirements of

18 Section 20-10 of the Illinois Procurement Code. The Energy

19 Workforce Equity Database shall be a searchable database

20 of suppliers, vendors, and subcontractors for clean energy

21 industries that is:

22 (A) publicly accessible;

23 (B) easy for people to find and use;

24 (C) organized by company specialty or field;

25 (D) region-specific; and

26 (E) populated with information including, but not

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1 limited to, contacts for suppliers, vendors, or

2 subcontractors who are minority and women-owned

3 business enterprise certified or who participate or

4 have participated in any of the programs described in

5 this Act.

6 (2) The Agency shall create an easily accessible,

7 public facing online tool using the database information

8 that includes, at a minimum, the following:

9 (A) a map of environmental justice and equity

10 investment eligible communities;

11 (B) job postings and recruiting opportunities;

12 (C) a means by which recruiting clean energy

13 companies can find and interact with current or former

14 participants of clean energy workforce training

15 programs;

16 (D) information on workforce training service

17 providers and training opportunities available to

18 prospective workers;

19 (E) renewable energy company diversity reporting;

20 (F) a list of equity eligible contractors with

21 their contact information, types of work performed,

22 and locations worked in;

23 (G) reporting on outcomes of the programs

24 described in the workforce programs of the Energy

25 Transition Act, including information such as, but not

26 limited to, retention rate, graduation rate, and

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1 placement rates of trainees; and

2 (H) information about the Jobs and Environmental

3 Justice Grant Program, the Clean Energy Jobs and

4 Justice Fund, and other sources of capital.

5 (3) The Agency shall ensure the database is regularly

6 updated to ensure information is current and shall

7 coordinate with the Department of Commerce and Economic

8 Opportunity to ensure that it includes information on

9 individuals and entities that are or have participated in

10 the Clean Jobs Workforce Network Program, Clean Energy

11 Contractor Incubator Program, Returning Residents Clean

12 Jobs Training Program, or Clean Energy Primes Contractor

13 Accelerator Program.

14 (c-30) Enforcement of minimum equity standards. All

15 entities seeking renewable energy credits must submit an

16 annual report to demonstrate compliance with each of the

17 equity commitments required under subsection (c-10). If the

18 Agency concludes the entity has not met or maintained its

19 minimum equity standards required under the applicable

20 subparagraphs under subsection (c-10), the Agency shall deny

21 the entity's ability to participate in procurement programs in

22 subsection (c), including by withholding approved vendor or

23 designee status. The Agency may require the entity to enter

24 into a corrective action plan. An entity that is not

25 recertified for failing to meet required equity actions in

26 subparagraph (c-10) may reapply once they have a corrective

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1 action plan and achieve compliance with the minimum equity

2 standards.

3 (d) Clean coal portfolio standard.

4 (1) The procurement plans shall include electricity

5 generated using clean coal. Each utility shall enter into

6 one or more sourcing agreements with the initial clean

7 coal facility, as provided in paragraph (3) of this

8 subsection (d), covering electricity generated by the

9 initial clean coal facility representing at least 5% of

10 each utility's total supply to serve the load of eligible

11 retail customers in 2015 and each year thereafter, as

12 described in paragraph (3) of this subsection (d), subject

13 to the limits specified in paragraph (2) of this

14 subsection (d). It is the goal of the State that by January

15 1, 2025, 25% of the electricity used in the State shall be

16 generated by cost-effective clean coal facilities. For

17 purposes of this subsection (d), "cost-effective" means

18 that the expenditures pursuant to such sourcing agreements

19 do not cause the limit stated in paragraph (2) of this

20 subsection (d) to be exceeded and do not exceed cost-based

21 benchmarks, which shall be developed to assess all

22 expenditures pursuant to such sourcing agreements covering

23 electricity generated by clean coal facilities, other than

24 the initial clean coal facility, by the procurement

25 administrator, in consultation with the Commission staff,

26 Agency staff, and the procurement monitor and shall be

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1 subject to Commission review and approval.

2 A utility party to a sourcing agreement shall

3 immediately retire any emission credits that it receives

4 in connection with the electricity covered by such

5 agreement.

6 Utilities shall maintain adequate records documenting

7 the purchases under the sourcing agreement to comply with

8 this subsection (d) and shall file an accounting with the

9 load forecast that must be filed with the Agency by July 15

10 of each year, in accordance with subsection (d) of Section

11 16-111.5 of the Public Utilities Act.

12 A utility shall be deemed to have complied with the

13 clean coal portfolio standard specified in this subsection

14 (d) if the utility enters into a sourcing agreement as

15 required by this subsection (d).

16 (2) For purposes of this subsection (d), the required

17 execution of sourcing agreements with the initial clean

18 coal facility for a particular year shall be measured as a

19 percentage of the actual amount of electricity

20 (megawatt-hours) supplied by the electric utility to

21 eligible retail customers in the planning year ending

22 immediately prior to the agreement's execution. For

23 purposes of this subsection (d), the amount paid per

24 kilowatthour means the total amount paid for electric

25 service expressed on a per kilowatthour basis. For

26 purposes of this subsection (d), the total amount paid for

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1 electric service includes without limitation amounts paid

2 for supply, transmission, distribution, surcharges and

3 add-on taxes.

4 Notwithstanding the requirements of this subsection

5 (d), the total amount paid under sourcing agreements with

6 clean coal facilities pursuant to the procurement plan for

7 any given year shall be reduced by an amount necessary to

8 limit the annual estimated average net increase due to the

9 costs of these resources included in the amounts paid by

10 eligible retail customers in connection with electric

11 service to:

12 (A) in 2010, no more than 0.5% of the amount paid

13 per kilowatthour by those customers during the year

14 ending May 31, 2009;

15 (B) in 2011, the greater of an additional 0.5% of

16 the amount paid per kilowatthour by those customers

17 during the year ending May 31, 2010 or 1% of the amount

18 paid per kilowatthour by those customers during the

19 year ending May 31, 2009;

20 (C) in 2012, the greater of an additional 0.5% of

21 the amount paid per kilowatthour by those customers

22 during the year ending May 31, 2011 or 1.5% of the

23 amount paid per kilowatthour by those customers during

24 the year ending May 31, 2009;

25 (D) in 2013, the greater of an additional 0.5% of

26 the amount paid per kilowatthour by those customers

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1 during the year ending May 31, 2012 or 2% of the amount

2 paid per kilowatthour by those customers during the

3 year ending May 31, 2009; and

4 (E) thereafter, the total amount paid under

5 sourcing agreements with clean coal facilities

6 pursuant to the procurement plan for any single year

7 shall be reduced by an amount necessary to limit the

8 estimated average net increase due to the cost of

9 these resources included in the amounts paid by

10 eligible retail customers in connection with electric

11 service to no more than the greater of (i) 2.015% of

12 the amount paid per kilowatthour by those customers

13 during the year ending May 31, 2009 or (ii) the

14 incremental amount per kilowatthour paid for these

15 resources in 2013. These requirements may be altered

16 only as provided by statute.

17 No later than June 30, 2015, the Commission shall

18 review the limitation on the total amount paid under

19 sourcing agreements, if any, with clean coal facilities

20 pursuant to this subsection (d) and report to the General

21 Assembly its findings as to whether that limitation unduly

22 constrains the amount of electricity generated by

23 cost-effective clean coal facilities that is covered by

24 sourcing agreements.

25 (3) Initial clean coal facility. In order to promote

26 development of clean coal facilities in Illinois, each

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1 electric utility subject to this Section shall execute a

2 sourcing agreement to source electricity from a proposed

3 clean coal facility in Illinois (the "initial clean coal

4 facility") that will have a nameplate capacity of at least

5 500 MW when commercial operation commences, that has a

6 final Clean Air Act permit on June 1, 2009 (the effective

7 date of Public Act 95-1027), and that will meet the

8 definition of clean coal facility in Section 1-10 of this

9 Act when commercial operation commences. The sourcing

10 agreements with this initial clean coal facility shall be

11 subject to both approval of the initial clean coal

12 facility by the General Assembly and satisfaction of the

13 requirements of paragraph (4) of this subsection (d) and

14 shall be executed within 90 days after any such approval

15 by the General Assembly. The Agency and the Commission

16 shall have authority to inspect all books and records

17 associated with the initial clean coal facility during the

18 term of such a sourcing agreement. A utility's sourcing

19 agreement for electricity produced by the initial clean

20 coal facility shall include:

21 (A) a formula contractual price (the "contract

22 price") approved pursuant to paragraph (4) of this

23 subsection (d), which shall:

24 (i) be determined using a cost of service

25 methodology employing either a level or deferred

26 capital recovery component, based on a capital

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1 structure consisting of 45% equity and 55% debt,

2 and a return on equity as may be approved by the

3 Federal Energy Regulatory Commission, which in any

4 case may not exceed the lower of 11.5% or the rate

5 of return approved by the General Assembly

6 pursuant to paragraph (4) of this subsection (d);

7 and

8 (ii) provide that all miscellaneous net

9 revenue, including but not limited to net revenue

10 from the sale of emission allowances, if any,

11 substitute natural gas, if any, grants or other

12 support provided by the State of Illinois or the

13 United States Government, firm transmission

14 rights, if any, by-products produced by the

15 facility, energy or capacity derived from the

16 facility and not covered by a sourcing agreement

17 pursuant to paragraph (3) of this subsection (d)

18 or item (5) of subsection (d) of Section 16-115 of

19 the Public Utilities Act, whether generated from

20 the synthesis gas derived from coal, from SNG, or

21 from natural gas, shall be credited against the

22 revenue requirement for this initial clean coal

23 facility;

24 (B) power purchase provisions, which shall:

25 (i) provide that the utility party to such

26 sourcing agreement shall pay the contract price

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1 for electricity delivered under such sourcing

2 agreement;

3 (ii) require delivery of electricity to the

4 regional transmission organization market of the

5 utility that is party to such sourcing agreement;

6 (iii) require the utility party to such

7 sourcing agreement to buy from the initial clean

8 coal facility in each hour an amount of energy

9 equal to all clean coal energy made available from

10 the initial clean coal facility during such hour

11 times a fraction, the numerator of which is such

12 utility's retail market sales of electricity

13 (expressed in kilowatthours sold) in the State

14 during the prior calendar month and the

15 denominator of which is the total retail market

16 sales of electricity (expressed in kilowatthours

17 sold) in the State by utilities during such prior

18 month and the sales of electricity (expressed in

19 kilowatthours sold) in the State by alternative

20 retail electric suppliers during such prior month

21 that are subject to the requirements of this

22 subsection (d) and paragraph (5) of subsection (d)

23 of Section 16-115 of the Public Utilities Act,

24 provided that the amount purchased by the utility

25 in any year will be limited by paragraph (2) of

26 this subsection (d); and

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1 (iv) be considered pre-existing contracts in

2 such utility's procurement plans for eligible

3 retail customers;

4 (C) contract for differences provisions, which

5 shall:

6 (i) require the utility party to such sourcing

7 agreement to contract with the initial clean coal

8 facility in each hour with respect to an amount of

9 energy equal to all clean coal energy made

10 available from the initial clean coal facility

11 during such hour times a fraction, the numerator

12 of which is such utility's retail market sales of

13 electricity (expressed in kilowatthours sold) in

14 the utility's service territory in the State

15 during the prior calendar month and the

16 denominator of which is the total retail market

17 sales of electricity (expressed in kilowatthours

18 sold) in the State by utilities during such prior

19 month and the sales of electricity (expressed in

20 kilowatthours sold) in the State by alternative

21 retail electric suppliers during such prior month

22 that are subject to the requirements of this

23 subsection (d) and paragraph (5) of subsection (d)

24 of Section 16-115 of the Public Utilities Act,

25 provided that the amount paid by the utility in

26 any year will be limited by paragraph (2) of this

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1 subsection (d);

2 (ii) provide that the utility's payment

3 obligation in respect of the quantity of

4 electricity determined pursuant to the preceding

5 clause (i) shall be limited to an amount equal to

6 (1) the difference between the contract price

7 determined pursuant to subparagraph (A) of

8 paragraph (3) of this subsection (d) and the

9 day-ahead price for electricity delivered to the

10 regional transmission organization market of the

11 utility that is party to such sourcing agreement

12 (or any successor delivery point at which such

13 utility's supply obligations are financially

14 settled on an hourly basis) (the "reference

15 price") on the day preceding the day on which the

16 electricity is delivered to the initial clean coal

17 facility busbar, multiplied by (2) the quantity of

18 electricity determined pursuant to the preceding

19 clause (i); and

20 (iii) not require the utility to take physical

21 delivery of the electricity produced by the

22 facility;

23 (D) general provisions, which shall:

24 (i) specify a term of no more than 30 years,

25 commencing on the commercial operation date of the

26 facility;

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1 (ii) provide that utilities shall maintain

2 adequate records documenting purchases under the

3 sourcing agreements entered into to comply with

4 this subsection (d) and shall file an accounting

5 with the load forecast that must be filed with the

6 Agency by July 15 of each year, in accordance with

7 subsection (d) of Section 16-111.5 of the Public

8 Utilities Act;

9 (iii) provide that all costs associated with

10 the initial clean coal facility will be

11 periodically reported to the Federal Energy

12 Regulatory Commission and to purchasers in

13 accordance with applicable laws governing

14 cost-based wholesale power contracts;

15 (iv) permit the Illinois Power Agency to

16 assume ownership of the initial clean coal

17 facility, without monetary consideration and

18 otherwise on reasonable terms acceptable to the

19 Agency, if the Agency so requests no less than 3

20 years prior to the end of the stated contract

21 term;

22 (v) require the owner of the initial clean

23 coal facility to provide documentation to the

24 Commission each year, starting in the facility's

25 first year of commercial operation, accurately

26 reporting the quantity of carbon emissions from

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1 the facility that have been captured and

2 sequestered and report any quantities of carbon

3 released from the site or sites at which carbon

4 emissions were sequestered in prior years, based

5 on continuous monitoring of such sites. If, in any

6 year after the first year of commercial operation,

7 the owner of the facility fails to demonstrate

8 that the initial clean coal facility captured and

9 sequestered at least 50% of the total carbon

10 emissions that the facility would otherwise emit

11 or that sequestration of emissions from prior

12 years has failed, resulting in the release of

13 carbon dioxide into the atmosphere, the owner of

14 the facility must offset excess emissions. Any

15 such carbon offsets must be permanent, additional,

16 verifiable, real, located within the State of

17 Illinois, and legally and practicably enforceable.

18 The cost of such offsets for the facility that are

19 not recoverable shall not exceed $15 million in

20 any given year. No costs of any such purchases of

21 carbon offsets may be recovered from a utility or

22 its customers. All carbon offsets purchased for

23 this purpose and any carbon emission credits

24 associated with sequestration of carbon from the

25 facility must be permanently retired. The initial

26 clean coal facility shall not forfeit its

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1 designation as a clean coal facility if the

2 facility fails to fully comply with the applicable

3 carbon sequestration requirements in any given

4 year, provided the requisite offsets are

5 purchased. However, the Attorney General, on

6 behalf of the People of the State of Illinois, may

7 specifically enforce the facility's sequestration

8 requirement and the other terms of this contract

9 provision. Compliance with the sequestration

10 requirements and offset purchase requirements

11 specified in paragraph (3) of this subsection (d)

12 shall be reviewed annually by an independent

13 expert retained by the owner of the initial clean

14 coal facility, with the advance written approval

15 of the Attorney General. The Commission may, in

16 the course of the review specified in item (vii),

17 reduce the allowable return on equity for the

18 facility if the facility willfully fails to comply

19 with the carbon capture and sequestration

20 requirements set forth in this item (v);

21 (vi) include limits on, and accordingly

22 provide for modification of, the amount the

23 utility is required to source under the sourcing

24 agreement consistent with paragraph (2) of this

25 subsection (d);

26 (vii) require Commission review: (1) to

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1 determine the justness, reasonableness, and

2 prudence of the inputs to the formula referenced

3 in subparagraphs (A)(i) through (A)(iii) of

4 paragraph (3) of this subsection (d), prior to an

5 adjustment in those inputs including, without

6 limitation, the capital structure and return on

7 equity, fuel costs, and other operations and

8 maintenance costs and (2) to approve the costs to

9 be passed through to customers under the sourcing

10 agreement by which the utility satisfies its

11 statutory obligations. Commission review shall

12 occur no less than every 3 years, regardless of

13 whether any adjustments have been proposed, and

14 shall be completed within 9 months;

15 (viii) limit the utility's obligation to such

16 amount as the utility is allowed to recover

17 through tariffs filed with the Commission,

18 provided that neither the clean coal facility nor

19 the utility waives any right to assert federal

20 pre-emption or any other argument in response to a

21 purported disallowance of recovery costs;

22 (ix) limit the utility's or alternative retail

23 electric supplier's obligation to incur any

24 liability until such time as the facility is in

25 commercial operation and generating power and

26 energy and such power and energy is being

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1 delivered to the facility busbar;

2 (x) provide that the owner or owners of the

3 initial clean coal facility, which is the

4 counterparty to such sourcing agreement, shall

5 have the right from time to time to elect whether

6 the obligations of the utility party thereto shall

7 be governed by the power purchase provisions or

8 the contract for differences provisions;

9 (xi) append documentation showing that the

10 formula rate and contract, insofar as they relate

11 to the power purchase provisions, have been

12 approved by the Federal Energy Regulatory

13 Commission pursuant to Section 205 of the Federal

14 Power Act;

15 (xii) provide that any changes to the terms of

16 the contract, insofar as such changes relate to

17 the power purchase provisions, are subject to

18 review under the public interest standard applied

19 by the Federal Energy Regulatory Commission

20 pursuant to Sections 205 and 206 of the Federal

21 Power Act; and

22 (xiii) conform with customary lender

23 requirements in power purchase agreements used as

24 the basis for financing non-utility generators.

25 (4) Effective date of sourcing agreements with the

26 initial clean coal facility. Any proposed sourcing

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1 agreement with the initial clean coal facility shall not

2 become effective unless the following reports are prepared

3 and submitted and authorizations and approvals obtained:

4 (i) Facility cost report. The owner of the initial

5 clean coal facility shall submit to the Commission,

6 the Agency, and the General Assembly a front-end

7 engineering and design study, a facility cost report,

8 method of financing (including but not limited to

9 structure and associated costs), and an operating and

10 maintenance cost quote for the facility (collectively

11 "facility cost report"), which shall be prepared in

12 accordance with the requirements of this paragraph (4)

13 of subsection (d) of this Section, and shall provide

14 the Commission and the Agency access to the work

15 papers, relied upon documents, and any other backup

16 documentation related to the facility cost report.

17 (ii) Commission report. Within 6 months following

18 receipt of the facility cost report, the Commission,

19 in consultation with the Agency, shall submit a report

20 to the General Assembly setting forth its analysis of

21 the facility cost report. Such report shall include,

22 but not be limited to, a comparison of the costs

23 associated with electricity generated by the initial

24 clean coal facility to the costs associated with

25 electricity generated by other types of generation

26 facilities, an analysis of the rate impacts on

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1 residential and small business customers over the life

2 of the sourcing agreements, and an analysis of the

3 likelihood that the initial clean coal facility will

4 commence commercial operation by and be delivering

5 power to the facility's busbar by 2016. To assist in

6 the preparation of its report, the Commission, in

7 consultation with the Agency, may hire one or more

8 experts or consultants, the costs of which shall be

9 paid for by the owner of the initial clean coal

10 facility. The Commission and Agency may begin the

11 process of selecting such experts or consultants prior

12 to receipt of the facility cost report.

13 (iii) General Assembly approval. The proposed

14 sourcing agreements shall not take effect unless,

15 based on the facility cost report and the Commission's

16 report, the General Assembly enacts authorizing

17 legislation approving (A) the projected price, stated

18 in cents per kilowatthour, to be charged for

19 electricity generated by the initial clean coal

20 facility, (B) the projected impact on residential and

21 small business customers' bills over the life of the

22 sourcing agreements, and (C) the maximum allowable

23 return on equity for the project; and

24 (iv) Commission review. If the General Assembly

25 enacts authorizing legislation pursuant to

26 subparagraph (iii) approving a sourcing agreement, the

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1 Commission shall, within 90 days of such enactment,

2 complete a review of such sourcing agreement. During

3 such time period, the Commission shall implement any

4 directive of the General Assembly, resolve any

5 disputes between the parties to the sourcing agreement

6 concerning the terms of such agreement, approve the

7 form of such agreement, and issue an order finding

8 that the sourcing agreement is prudent and reasonable.

9 The facility cost report shall be prepared as follows:

10 (A) The facility cost report shall be prepared by

11 duly licensed engineering and construction firms

12 detailing the estimated capital costs payable to one

13 or more contractors or suppliers for the engineering,

14 procurement and construction of the components

15 comprising the initial clean coal facility and the

16 estimated costs of operation and maintenance of the

17 facility. The facility cost report shall include:

18 (i) an estimate of the capital cost of the

19 core plant based on one or more front end

20 engineering and design studies for the

21 gasification island and related facilities. The

22 core plant shall include all civil, structural,

23 mechanical, electrical, control, and safety

24 systems.

25 (ii) an estimate of the capital cost of the

26 balance of the plant, including any capital costs

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1 associated with sequestration of carbon dioxide

2 emissions and all interconnects and interfaces

3 required to operate the facility, such as

4 transmission of electricity, construction or

5 backfeed power supply, pipelines to transport

6 substitute natural gas or carbon dioxide, potable

7 water supply, natural gas supply, water supply,

8 water discharge, landfill, access roads, and coal

9 delivery.

10 The quoted construction costs shall be expressed

11 in nominal dollars as of the date that the quote is

12 prepared and shall include capitalized financing costs

13 during construction, taxes, insurance, and other

14 owner's costs, and an assumed escalation in materials

15 and labor beyond the date as of which the construction

16 cost quote is expressed.

17 (B) The front end engineering and design study for

18 the gasification island and the cost study for the

19 balance of plant shall include sufficient design work

20 to permit quantification of major categories of

21 materials, commodities and labor hours, and receipt of

22 quotes from vendors of major equipment required to

23 construct and operate the clean coal facility.

24 (C) The facility cost report shall also include an

25 operating and maintenance cost quote that will provide

26 the estimated cost of delivered fuel, personnel,

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1 maintenance contracts, chemicals, catalysts,

2 consumables, spares, and other fixed and variable

3 operations and maintenance costs. The delivered fuel

4 cost estimate will be provided by a recognized third

5 party expert or experts in the fuel and transportation

6 industries. The balance of the operating and

7 maintenance cost quote, excluding delivered fuel

8 costs, will be developed based on the inputs provided

9 by duly licensed engineering and construction firms

10 performing the construction cost quote, potential

11 vendors under long-term service agreements and plant

12 operating agreements, or recognized third party plant

13 operator or operators.

14 The operating and maintenance cost quote

15 (including the cost of the front end engineering and

16 design study) shall be expressed in nominal dollars as

17 of the date that the quote is prepared and shall

18 include taxes, insurance, and other owner's costs, and

19 an assumed escalation in materials and labor beyond

20 the date as of which the operating and maintenance

21 cost quote is expressed.

22 (D) The facility cost report shall also include an

23 analysis of the initial clean coal facility's ability

24 to deliver power and energy into the applicable

25 regional transmission organization markets and an

26 analysis of the expected capacity factor for the

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1 initial clean coal facility.

2 (E) Amounts paid to third parties unrelated to the

3 owner or owners of the initial clean coal facility to

4 prepare the core plant construction cost quote,

5 including the front end engineering and design study,

6 and the operating and maintenance cost quote will be

7 reimbursed through Coal Development Bonds.

8 (5) Re-powering and retrofitting coal-fired power

9 plants previously owned by Illinois utilities to qualify

10 as clean coal facilities. During the 2009 procurement

11 planning process and thereafter, the Agency and the

12 Commission shall consider sourcing agreements covering

13 electricity generated by power plants that were previously

14 owned by Illinois utilities and that have been or will be

15 converted into clean coal facilities, as defined by

16 Section 1-10 of this Act. Pursuant to such procurement

17 planning process, the owners of such facilities may

18 propose to the Agency sourcing agreements with utilities

19 and alternative retail electric suppliers required to

20 comply with subsection (d) of this Section and item (5) of

21 subsection (d) of Section 16-115 of the Public Utilities

22 Act, covering electricity generated by such facilities. In

23 the case of sourcing agreements that are power purchase

24 agreements, the contract price for electricity sales shall

25 be established on a cost of service basis. In the case of

26 sourcing agreements that are contracts for differences,

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1 the contract price from which the reference price is

2 subtracted shall be established on a cost of service

3 basis. The Agency and the Commission may approve any such

4 utility sourcing agreements that do not exceed cost-based

5 benchmarks developed by the procurement administrator, in

6 consultation with the Commission staff, Agency staff and

7 the procurement monitor, subject to Commission review and

8 approval. The Commission shall have authority to inspect

9 all books and records associated with these clean coal

10 facilities during the term of any such contract.

11 (6) Costs incurred under this subsection (d) or

12 pursuant to a contract entered into under this subsection

13 (d) shall be deemed prudently incurred and reasonable in

14 amount and the electric utility shall be entitled to full

15 cost recovery pursuant to the tariffs filed with the

16 Commission.

17 (d-5) Zero emission standard.

18 (1) Beginning with the delivery year commencing on

19 June 1, 2017, the Agency shall, for electric utilities

20 that serve at least 100,000 retail customers in this

21 State, procure contracts with zero emission facilities

22 that are reasonably capable of generating cost-effective

23 zero emission credits in an amount approximately equal to

24 16% of the actual amount of electricity delivered by each

25 electric utility to retail customers in the State during

26 calendar year 2014. For an electric utility serving fewer

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1 than 100,000 retail customers in this State that

2 requested, under Section 16-111.5 of the Public Utilities

3 Act, that the Agency procure power and energy for all or a

4 portion of the utility's Illinois load for the delivery

5 year commencing June 1, 2016, the Agency shall procure

6 contracts with zero emission facilities that are

7 reasonably capable of generating cost-effective zero

8 emission credits in an amount approximately equal to 16%

9 of the portion of power and energy to be procured by the

10 Agency for the utility. The duration of the contracts

11 procured under this subsection (d-5) shall be for a term

12 of 10 years ending May 31, 2027. The quantity of zero

13 emission credits to be procured under the contracts shall

14 be all of the zero emission credits generated by the zero

15 emission facility in each delivery year; however, if the

16 zero emission facility is owned by more than one entity,

17 then the quantity of zero emission credits to be procured

18 under the contracts shall be the amount of zero emission

19 credits that are generated from the portion of the zero

20 emission facility that is owned by the winning supplier.

21 The 16% value identified in this paragraph (1) is the

22 average of the percentage targets in subparagraph (B) of

23 paragraph (1) of subsection (c) of this Section for the 5

24 delivery years beginning June 1, 2017.

25 The procurement process shall be subject to the

26 following provisions:

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1 (A) Those zero emission facilities that intend to

2 participate in the procurement shall submit to the

3 Agency the following eligibility information for each

4 zero emission facility on or before the date

5 established by the Agency:

6 (i) the in-service date and remaining useful

7 life of the zero emission facility;

8 (ii) the amount of power generated annually

9 for each of the years 2005 through 2015, and the

10 projected zero emission credits to be generated

11 over the remaining useful life of the zero

12 emission facility, which shall be used to

13 determine the capability of each facility;

14 (iii) the annual zero emission facility cost

15 projections, expressed on a per megawatthour

16 basis, over the next 6 delivery years, which shall

17 include the following: operation and maintenance

18 expenses; fully allocated overhead costs, which

19 shall be allocated using the methodology developed

20 by the Institute for Nuclear Power Operations;

21 fuel expenditures; non-fuel capital expenditures;

22 spent fuel expenditures; a return on working

23 capital; the cost of operational and market risks

24 that could be avoided by ceasing operation; and

25 any other costs necessary for continued

26 operations, provided that "necessary" means, for

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1 purposes of this item (iii), that the costs could

2 reasonably be avoided only by ceasing operations

3 of the zero emission facility; and

4 (iv) a commitment to continue operating, for

5 the duration of the contract or contracts executed

6 under the procurement held under this subsection

7 (d-5), the zero emission facility that produces

8 the zero emission credits to be procured in the

9 procurement.

10 The information described in item (iii) of this

11 subparagraph (A) may be submitted on a confidential

12 basis and shall be treated and maintained by the

13 Agency, the procurement administrator, and the

14 Commission as confidential and proprietary and exempt

15 from disclosure under subparagraphs (a) and (g) of

16 paragraph (1) of Section 7 of the Freedom of

17 Information Act. The Office of Attorney General shall

18 have access to, and maintain the confidentiality of,

19 such information pursuant to Section 6.5 of the

20 Attorney General Act.

21 (B) The price for each zero emission credit

22 procured under this subsection (d-5) for each delivery

23 year shall be in an amount that equals the Social Cost

24 of Carbon, expressed on a price per megawatthour

25 basis. However, to ensure that the procurement remains

26 affordable to retail customers in this State if

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1 electricity prices increase, the price in an

2 applicable delivery year shall be reduced below the

3 Social Cost of Carbon by the amount ("Price

4 Adjustment") by which the market price index for the

5 applicable delivery year exceeds the baseline market

6 price index for the consecutive 12-month period ending

7 May 31, 2016. If the Price Adjustment is greater than

8 or equal to the Social Cost of Carbon in an applicable

9 delivery year, then no payments shall be due in that

10 delivery year. The components of this calculation are

11 defined as follows:

12 (i) Social Cost of Carbon: The Social Cost of

13 Carbon is $16.50 per megawatthour, which is based

14 on the U.S. Interagency Working Group on Social

15 Cost of Carbon's price in the August 2016

16 Technical Update using a 3% discount rate,

17 adjusted for inflation for each year of the

18 program. Beginning with the delivery year

19 commencing June 1, 2023, the price per

20 megawatthour shall increase by $1 per

21 megawatthour, and continue to increase by an

22 additional $1 per megawatthour each delivery year

23 thereafter.

24 (ii) Baseline market price index: The baseline

25 market price index for the consecutive 12-month

26 period ending May 31, 2016 is $31.40 per

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1 megawatthour, which is based on the sum of (aa)

2 the average day-ahead energy price across all

3 hours of such 12-month period at the PJM

4 Interconnection LLC Northern Illinois Hub, (bb)

5 50% multiplied by the Base Residual Auction, or

6 its successor, capacity price for the rest of the

7 RTO zone group determined by PJM Interconnection

8 LLC, divided by 24 hours per day, and (cc) 50%

9 multiplied by the Planning Resource Auction, or

10 its successor, capacity price for Zone 4

11 determined by the Midcontinent Independent System

12 Operator, Inc., divided by 24 hours per day.

13 (iii) Market price index: The market price

14 index for a delivery year shall be the sum of

15 projected energy prices and projected capacity

16 prices determined as follows:

17 (aa) Projected energy prices: the

18 projected energy prices for the applicable

19 delivery year shall be calculated once for the

20 year using the forward market price for the

21 PJM Interconnection, LLC Northern Illinois

22 Hub. The forward market price shall be

23 calculated as follows: the energy forward

24 prices for each month of the applicable

25 delivery year averaged for each trade date

26 during the calendar year immediately preceding

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1 that delivery year to produce a single energy

2 forward price for the delivery year. The

3 forward market price calculation shall use

4 data published by the Intercontinental

5 Exchange, or its successor.

6 (bb) Projected capacity prices:

7 (I) For the delivery years commencing

8 June 1, 2017, June 1, 2018, and June 1,

9 2019, the projected capacity price shall

10 be equal to the sum of (1) 50% multiplied

11 by the Base Residual Auction, or its

12 successor, price for the rest of the RTO

13 zone group as determined by PJM

14 Interconnection LLC, divided by 24 hours

15 per day and, (2) 50% multiplied by the

16 resource auction price determined in the

17 resource auction administered by the

18 Midcontinent Independent System Operator,

19 Inc., in which the largest percentage of

20 load cleared for Local Resource Zone 4,

21 divided by 24 hours per day, and where

22 such price is determined by the

23 Midcontinent Independent System Operator,

24 Inc.

25 (II) For the delivery year commencing

26 June 1, 2020, and each year thereafter,

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1 the projected capacity price shall be

2 equal to the sum of (1) 50% multiplied by

3 the Base Residual Auction, or its

4 successor, price for the ComEd zone as

5 determined by PJM Interconnection LLC,

6 divided by 24 hours per day, and (2) 50%

7 multiplied by the resource auction price

8 determined in the resource auction

9 administered by the Midcontinent

10 Independent System Operator, Inc., in

11 which the largest percentage of load

12 cleared for Local Resource Zone 4, divided

13 by 24 hours per day, and where such price

14 is determined by the Midcontinent

15 Independent System Operator, Inc.

16 For purposes of this subsection (d-5):

17 "Rest of the RTO" and "ComEd Zone" shall have

18 the meaning ascribed to them by PJM

19 Interconnection, LLC.

20 "RTO" means regional transmission

21 organization.

22 (C) No later than 45 days after June 1, 2017 (the

23 effective date of Public Act 99-906), the Agency shall

24 publish its proposed zero emission standard

25 procurement plan. The plan shall be consistent with

26 the provisions of this paragraph (1) and shall provide

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1 that winning bids shall be selected based on public

2 interest criteria that include, but are not limited

3 to, minimizing carbon dioxide emissions that result

4 from electricity consumed in Illinois and minimizing

5 sulfur dioxide, nitrogen oxide, and particulate matter

6 emissions that adversely affect the citizens of this

7 State. In particular, the selection of winning bids

8 shall take into account the incremental environmental

9 benefits resulting from the procurement, such as any

10 existing environmental benefits that are preserved by

11 the procurements held under Public Act 99-906 and

12 would cease to exist if the procurements were not

13 held, including the preservation of zero emission

14 facilities. The plan shall also describe in detail how

15 each public interest factor shall be considered and

16 weighted in the bid selection process to ensure that

17 the public interest criteria are applied to the

18 procurement and given full effect.

19 For purposes of developing the plan, the Agency

20 shall consider any reports issued by a State agency,

21 board, or commission under House Resolution 1146 of

22 the 98th General Assembly and paragraph (4) of

23 subsection (d) of this Section, as well as publicly

24 available analyses and studies performed by or for

25 regional transmission organizations that serve the

26 State and their independent market monitors.

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1 Upon publishing of the zero emission standard

2 procurement plan, copies of the plan shall be posted

3 and made publicly available on the Agency's website.

4 All interested parties shall have 10 days following

5 the date of posting to provide comment to the Agency on

6 the plan. All comments shall be posted to the Agency's

7 website. Following the end of the comment period, but

8 no more than 60 days later than June 1, 2017 (the

9 effective date of Public Act 99-906), the Agency shall

10 revise the plan as necessary based on the comments

11 received and file its zero emission standard

12 procurement plan with the Commission.

13 If the Commission determines that the plan will

14 result in the procurement of cost-effective zero

15 emission credits, then the Commission shall, after

16 notice and hearing, but no later than 45 days after the

17 Agency filed the plan, approve the plan or approve

18 with modification. For purposes of this subsection

19 (d-5), "cost effective" means the projected costs of

20 procuring zero emission credits from zero emission

21 facilities do not cause the limit stated in paragraph

22 (2) of this subsection to be exceeded.

23 (C-5) As part of the Commission's review and

24 acceptance or rejection of the procurement results,

25 the Commission shall, in its public notice of

26 successful bidders:

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1 (i) identify how the winning bids satisfy the

2 public interest criteria described in subparagraph

3 (C) of this paragraph (1) of minimizing carbon

4 dioxide emissions that result from electricity

5 consumed in Illinois and minimizing sulfur

6 dioxide, nitrogen oxide, and particulate matter

7 emissions that adversely affect the citizens of

8 this State;

9 (ii) specifically address how the selection of

10 winning bids takes into account the incremental

11 environmental benefits resulting from the

12 procurement, including any existing environmental

13 benefits that are preserved by the procurements

14 held under Public Act 99-906 and would have ceased

15 to exist if the procurements had not been held,

16 such as the preservation of zero emission

17 facilities;

18 (iii) quantify the environmental benefit of

19 preserving the resources identified in item (ii)

20 of this subparagraph (C-5), including the

21 following:

22 (aa) the value of avoided greenhouse gas

23 emissions measured as the product of the zero

24 emission facilities' output over the contract

25 term multiplied by the U.S. Environmental

26 Protection Agency eGrid subregion carbon

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1 dioxide emission rate and the U.S. Interagency

2 Working Group on Social Cost of Carbon's price

3 in the August 2016 Technical Update using a 3%

4 discount rate, adjusted for inflation for each

5 delivery year; and

6 (bb) the costs of replacement with other

7 zero carbon dioxide resources, including wind

8 and photovoltaic, based upon the simple

9 average of the following:

10 (I) the price, or if there is more

11 than one price, the average of the prices,

12 paid for renewable energy credits from new

13 utility-scale wind projects in the

14 procurement events specified in item (i)

15 of subparagraph (G) of paragraph (1) of

16 subsection (c) of this Section; and

17 (II) the price, or if there is more

18 than one price, the average of the prices,

19 paid for renewable energy credits from new

20 utility-scale solar projects and

21 brownfield site photovoltaic projects in

22 the procurement events specified in item

23 (ii) of subparagraph (G) of paragraph (1)

24 of subsection (c) of this Section and,

25 after January 1, 2015, renewable energy

26 credits from photovoltaic distributed

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1 generation projects in procurement events

2 held under subsection (c) of this Section.

3 Each utility shall enter into binding contractual

4 arrangements with the winning suppliers.

5 The procurement described in this subsection

6 (d-5), including, but not limited to, the execution of

7 all contracts procured, shall be completed no later

8 than May 10, 2017. Based on the effective date of

9 Public Act 99-906, the Agency and Commission may, as

10 appropriate, modify the various dates and timelines

11 under this subparagraph and subparagraphs (C) and (D)

12 of this paragraph (1). The procurement and plan

13 approval processes required by this subsection (d-5)

14 shall be conducted in conjunction with the procurement

15 and plan approval processes required by subsection (c)

16 of this Section and Section 16-111.5 of the Public

17 Utilities Act, to the extent practicable.

18 Notwithstanding whether a procurement event is

19 conducted under Section 16-111.5 of the Public

20 Utilities Act, the Agency shall immediately initiate a

21 procurement process on June 1, 2017 (the effective

22 date of Public Act 99-906).

23 (D) Following the procurement event described in

24 this paragraph (1) and consistent with subparagraph

25 (B) of this paragraph (1), the Agency shall calculate

26 the payments to be made under each contract for the

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1 next delivery year based on the market price index for

2 that delivery year. The Agency shall publish the

3 payment calculations no later than May 25, 2017 and

4 every May 25 thereafter.

5 (E) Notwithstanding the requirements of this

6 subsection (d-5), the contracts executed under this

7 subsection (d-5) shall provide that the zero emission

8 facility may, as applicable, suspend or terminate

9 performance under the contracts in the following

10 instances:

11 (i) A zero emission facility shall be excused

12 from its performance under the contract for any

13 cause beyond the control of the resource,

14 including, but not restricted to, acts of God,

15 flood, drought, earthquake, storm, fire,

16 lightning, epidemic, war, riot, civil disturbance

17 or disobedience, labor dispute, labor or material

18 shortage, sabotage, acts of public enemy,

19 explosions, orders, regulations or restrictions

20 imposed by governmental, military, or lawfully

21 established civilian authorities, which, in any of

22 the foregoing cases, by exercise of commercially

23 reasonable efforts the zero emission facility

24 could not reasonably have been expected to avoid,

25 and which, by the exercise of commercially

26 reasonable efforts, it has been unable to

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1 overcome. In such event, the zero emission

2 facility shall be excused from performance for the

3 duration of the event, including, but not limited

4 to, delivery of zero emission credits, and no

5 payment shall be due to the zero emission facility

6 during the duration of the event.

7 (ii) A zero emission facility shall be

8 permitted to terminate the contract if legislation

9 is enacted into law by the General Assembly that

10 imposes or authorizes a new tax, special

11 assessment, or fee on the generation of

12 electricity, the ownership or leasehold of a

13 generating unit, or the privilege or occupation of

14 such generation, ownership, or leasehold of

15 generation units by a zero emission facility.

16 However, the provisions of this item (ii) do not

17 apply to any generally applicable tax, special

18 assessment or fee, or requirements imposed by

19 federal law.

20 (iii) A zero emission facility shall be

21 permitted to terminate the contract in the event

22 that the resource requires capital expenditures in

23 excess of $40,000,000 that were neither known nor

24 reasonably foreseeable at the time it executed the

25 contract and that a prudent owner or operator of

26 such resource would not undertake.

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1 (iv) A zero emission facility shall be

2 permitted to terminate the contract in the event

3 the Nuclear Regulatory Commission terminates the

4 resource's license.

5 (F) If the zero emission facility elects to

6 terminate a contract under subparagraph (E) of this

7 paragraph (1), then the Commission shall reopen the

8 docket in which the Commission approved the zero

9 emission standard procurement plan under subparagraph

10 (C) of this paragraph (1) and, after notice and

11 hearing, enter an order acknowledging the contract

12 termination election if such termination is consistent

13 with the provisions of this subsection (d-5).

14 (2) For purposes of this subsection (d-5), the amount

15 paid per kilowatthour means the total amount paid for

16 electric service expressed on a per kilowatthour basis.

17 For purposes of this subsection (d-5), the total amount

18 paid for electric service includes, without limitation,

19 amounts paid for supply, transmission, distribution,

20 surcharges, and add-on taxes.

21 Notwithstanding the requirements of this subsection

22 (d-5), the contracts executed under this subsection (d-5)

23 shall provide that the total of zero emission credits

24 procured under a procurement plan shall be subject to the

25 limitations of this paragraph (2). For each delivery year,

26 the contractual volume receiving payments in such year

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1 shall be reduced for all retail customers based on the

2 amount necessary to limit the net increase that delivery

3 year to the costs of those credits included in the amounts

4 paid by eligible retail customers in connection with

5 electric service to no more than 1.65% of the amount paid

6 per kilowatthour by eligible retail customers during the

7 year ending May 31, 2009. The result of this computation

8 shall apply to and reduce the procurement for all retail

9 customers, and all those customers shall pay the same

10 single, uniform cents per kilowatthour charge under

11 subsection (k) of Section 16-108 of the Public Utilities

12 Act. To arrive at a maximum dollar amount of zero emission

13 credits to be paid for the particular delivery year, the

14 resulting per kilowatthour amount shall be applied to the

15 actual amount of kilowatthours of electricity delivered by

16 the electric utility in the delivery year immediately

17 prior to the procurement, to all retail customers in its

18 service territory. Unpaid contractual volume for any

19 delivery year shall be paid in any subsequent delivery

20 year in which such payments can be made without exceeding

21 the amount specified in this paragraph (2). The

22 calculations required by this paragraph (2) shall be made

23 only once for each procurement plan year. Once the

24 determination as to the amount of zero emission credits to

25 be paid is made based on the calculations set forth in this

26 paragraph (2), no subsequent rate impact determinations

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1 shall be made and no adjustments to those contract amounts

2 shall be allowed. All costs incurred under those contracts

3 and in implementing this subsection (d-5) shall be

4 recovered by the electric utility as provided in this

5 Section.

6 No later than June 30, 2019, the Commission shall

7 review the limitation on the amount of zero emission

8 credits procured under this subsection (d-5) and report to

9 the General Assembly its findings as to whether that

10 limitation unduly constrains the procurement of

11 cost-effective zero emission credits.

12 (3) Six years after the execution of a contract under

13 this subsection (d-5), the Agency shall determine whether

14 the actual zero emission credit payments received by the

15 supplier over the 6-year period exceed the Average ZEC

16 Payment. In addition, at the end of the term of a contract

17 executed under this subsection (d-5), or at the time, if

18 any, a zero emission facility's contract is terminated

19 under subparagraph (E) of paragraph (1) of this subsection

20 (d-5), then the Agency shall determine whether the actual

21 zero emission credit payments received by the supplier

22 over the term of the contract exceed the Average ZEC

23 Payment, after taking into account any amounts previously

24 credited back to the utility under this paragraph (3). If

25 the Agency determines that the actual zero emission credit

26 payments received by the supplier over the relevant period

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1 exceed the Average ZEC Payment, then the supplier shall

2 credit the difference back to the utility. The amount of

3 the credit shall be remitted to the applicable electric

4 utility no later than 120 days after the Agency's

5 determination, which the utility shall reflect as a credit

6 on its retail customer bills as soon as practicable;

7 however, the credit remitted to the utility shall not

8 exceed the total amount of payments received by the

9 facility under its contract.

10 For purposes of this Section, the Average ZEC Payment

11 shall be calculated by multiplying the quantity of zero

12 emission credits delivered under the contract times the

13 average contract price. The average contract price shall

14 be determined by subtracting the amount calculated under

15 subparagraph (B) of this paragraph (3) from the amount

16 calculated under subparagraph (A) of this paragraph (3),

17 as follows:

18 (A) The average of the Social Cost of Carbon, as

19 defined in subparagraph (B) of paragraph (1) of this

20 subsection (d-5), during the term of the contract.

21 (B) The average of the market price indices, as

22 defined in subparagraph (B) of paragraph (1) of this

23 subsection (d-5), during the term of the contract,

24 minus the baseline market price index, as defined in

25 subparagraph (B) of paragraph (1) of this subsection

26 (d-5).

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1 If the subtraction yields a negative number, then the

2 Average ZEC Payment shall be zero.

3 (4) Cost-effective zero emission credits procured from

4 zero emission facilities shall satisfy the applicable

5 definitions set forth in Section 1-10 of this Act.

6 (5) The electric utility shall retire all zero

7 emission credits used to comply with the requirements of

8 this subsection (d-5).

9 (6) Electric utilities shall be entitled to recover

10 all of the costs associated with the procurement of zero

11 emission credits through an automatic adjustment clause

12 tariff in accordance with subsection (k) and (m) of

13 Section 16-108 of the Public Utilities Act, and the

14 contracts executed under this subsection (d-5) shall

15 provide that the utilities' payment obligations under such

16 contracts shall be reduced if an adjustment is required

17 under subsection (m) of Section 16-108 of the Public

18 Utilities Act.

19 (7) This subsection (d-5) shall become inoperative on

20 January 1, 2028.

21 (d-10) Nuclear Plant Assistance; carbon mitigation

22 credits.

23 (1) The General Assembly finds:

24 (A) The health, welfare, and prosperity of all

25 Illinois citizens require that the State of Illinois act

26 to avoid and not increase carbon emissions from electric

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1 generation sources while continuing to ensure affordable,

2 stable, and reliable electricity to all citizens.

3 (B) Absent immediate action by the State to preserve

4 existing carbon-free energy resources, those resources may

5 retire, and the electric generation needs of Illinois'

6 retail customers may be met instead by facilities that

7 emit significant amounts of carbon pollution and other

8 harmful air pollutants at a high social and economic cost

9 until Illinois is able to develop other forms of clean

10 energy.

11 (C) The General Assembly finds that nuclear power

12 generation is necessary for the State's transition to 100%

13 clean energy, and ensuring continued operation of nuclear

14 plants advances environmental and public health interests

15 through providing carbon-free electricity while reducing

16 the air pollution profile of the Illinois energy

17 generation fleet.

18 (D) The clean energy attributes of nuclear generation

19 facilities support the State in its efforts to achieve

20 100% clean energy.

21 (E) The State currently invests in various forms of

22 clean energy, including, but not limited to, renewable

23 energy, energy efficiency, and low-emission vehicles,

24 among others.

25 (F) The Environmental Protection Agency commissioned

26 an independent audit which provided a detailed assessment

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1 of the financial condition of the Illinois nuclear fleet

2 to evaluate its financial viability and whether the

3 environmental benefits of such resources were at risk. The

4 report identified the risk of losing the environmental

5 benefits of several specific nuclear units. The report

6 also identified that the LaSalle County Generating Station

7 will continue to operate through 2026 and therefore is not

8 eligible to participate in the carbon mitigation credit

9 program.

10 (G) Nuclear plants provide carbon-free energy, which

11 helps to avoid many health-related negative impacts for

12 Illinois residents.

13 (H) The procurement of carbon mitigation credits

14 representing the environmental benefits of carbon-free

15 generation will further the State's efforts at achieving

16 100% clean energy and decarbonizing the electricity sector

17 in a safe, reliable, and affordable manner. Further, the

18 procurement of carbon emission credits will enhance the

19 health and welfare of Illinois residents through decreased

20 reliance on more highly polluting generation.

21 (I) The General Assembly therefore finds it necessary

22 to establish carbon mitigation credits to ensure decreased

23 reliance on more carbon-intensive energy resources, for

24 transitioning to a fully decarbonized electricity sector,

25 and to help ensure health and welfare of the State's

26 residents.

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1 (2) As used in this subsection:

2 "Baseline costs" means costs used to establish a customer

3 protection cap that have been evaluated through an independent

4 audit of a carbon-free energy resource conducted by the

5 Environmental Protection Agency that evaluated projected

6 annual costs for operation and maintenance expenses; fully

7 allocated overhead costs, which shall be allocated using the

8 methodology developed by the Institute for Nuclear Power

9 Operations; fuel expenditures; nonfuel capital expenditures;

10 spent fuel expenditures; a return on working capital; the cost

11 of operational and market risks that could be avoided by

12 ceasing operation; and any other costs necessary for continued

13 operations, provided that "necessary" means, for purposes of

14 this definition, that the costs could reasonably be avoided

15 only by ceasing operations of the carbon-free energy resource.

16 "Carbon mitigation credit" means a tradable credit that

17 represents the carbon emission reduction attributes of one

18 megawatt-hour of energy produced from a carbon-free energy

19 resource.

20 "Carbon-free energy resource" means a generation facility

21 that: (1) is fueled by nuclear power; and (2) is

22 interconnected to PJM Interconnection, LLC.

23 (3) Procurement.

24 (A) Beginning with the delivery year commencing on

25 June 1, 2022, the Agency shall, for electric utilities

26 serving at least 3,000,000 retail customers in the State,

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1 seek to procure contracts for no more than approximately

2 54,500,000 cost-effective carbon mitigation credits from

3 carbon-free energy resources because such credits are

4 necessary to support current levels of carbon-free energy

5 generation and ensure the State meets its carbon dioxide

6 emissions reduction goals. The Agency shall not make a

7 partial award of a contract for carbon mitigation credits

8 covering a fractional amount of a carbon-free energy

9 resource's projected output.

10 (B) Each carbon-free energy resource that intends to

11 participate in a procurement shall be required to submit

12 to the Agency the following information for the resource

13 on or before the date established by the Agency:

14 (i) the in-service date and remaining useful life

15 of the carbon-free energy resource;

16 (ii) the amount of power generated annually for

17 each of the past 10 years, which shall be used to

18 determine the capability of each facility;

19 (iii) a commitment to be reflected in any contract

20 entered into pursuant to this subsection (d-10) to

21 continue operating the carbon-free energy resource at

22 a capacity factor of at least 88% annually on average

23 for the duration of the contract or contracts executed

24 under the procurement held under this subsection

25 (d-10), except in an instance described in

26 subparagraph (E) of paragraph (1) of subsection (d-5)

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1 of this Section or made impracticable as a result of

2 compliance with law or regulation;

3 (iv) financial need and the risk of loss of the

4 environmental benefits of such resource, which shall

5 include the following information:

6 (I) the carbon-free energy resource's cost

7 projections, expressed on a per megawatt-hour

8 basis, over the next 5 delivery years, which shall

9 include the following: operation and maintenance

10 expenses; fully allocated overhead costs, which

11 shall be allocated using the methodology developed

12 by the Institute for Nuclear Power Operations;

13 fuel expenditures; nonfuel capital expenditures;

14 spent fuel expenditures; a return on working

15 capital; the cost of operational and market risks

16 that could be avoided by ceasing operation; and

17 any other costs necessary for continued

18 operations, provided that "necessary" means, for

19 purposes of this subitem (I), that the costs could

20 reasonably be avoided only by ceasing operations

21 of the carbon-free energy resource; and

22 (II) the carbon-free energy resource's revenue

23 projections, including energy, capacity, ancillary

24 services, any other direct State support, known or

25 anticipated federal attribute credits, known or

26 anticipated tax credits, and any other direct

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1 federal support.

2 The information described in this subparagraph (B) may

3 be submitted on a confidential basis and shall be treated

4 and maintained by the Agency, the procurement

5 administrator, and the Commission as confidential and

6 proprietary and exempt from disclosure under subparagraphs

7 (a) and (g) of paragraph (1) of Section 7 of the Freedom of

8 Information Act. The Office of the Attorney General shall

9 have access to, and maintain the confidentiality of, such

10 information pursuant to Section 6.5 of the Attorney

11 General Act.

12 (C) The Agency shall solicit bids for the contracts

13 described in this subsection (d-10) from carbon-free

14 energy resources that have satisfied the requirements of

15 subparagraph (B) of this paragraph (3). The contracts

16 procured pursuant to a procurement event shall reflect,

17 and be subject to, the following terms, requirements, and

18 limitations:

19 (i) Contracts are for delivery of carbon

20 mitigation credits, and are not energy or capacity

21 sales contracts requiring physical delivery. Pursuant

22 to item (iii), contract payments shall fully deduct

23 the value of any monetized federal production tax

24 credits, credits issued pursuant to a federal clean

25 energy standard, and other federal credits if

26 applicable.

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1 (ii) Contracts for carbon mitigation credits shall

2 commence with the delivery year beginning on June 1,

3 2022 and shall be for a term of 5 delivery years

4 concluding on May 31, 2027.

5 (iii) The price per carbon mitigation credit to be

6 paid under a contract for a given delivery year shall

7 be equal to an accepted bid price less the sum of:

8 (I) one of the following energy price indices,

9 selected by the bidder at the time of the bid for

10 the term of the contract:

11 (aa) the weighted-average hourly day-ahead

12 price for the applicable delivery year at the

13 busbar of all resources procured pursuant to

14 this subsection (d-10), weighted by actual

15 production from the resources; or

16 (bb) the projected energy price for the

17 PJM Interconnection, LLC Northern Illinois Hub

18 for the applicable delivery year determined

19 according to subitem (aa) of item (iii) of

20 subparagraph (B) of paragraph (1) of

21 subsection (d-5).

22 (II) the Base Residual Auction Capacity Price

23 for the ComEd zone as determined by PJM

24 Interconnection, LLC, divided by 24 hours per day,

25 for the applicable delivery year for the first 3

26 delivery years, and then any subsequent delivery

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1 years unless the PJM Interconnection, LLC applies

2 the Minimum Offer Price Rule to participating

3 carbon-free energy resources because they supply

4 carbon mitigation credits pursuant to this Section

5 at which time, upon notice by the carbon-free

6 energy resource to the Commission and subject to

7 the Commission's confirmation, the value under

8 this subitem shall be zero, as further described

9 in the carbon mitigation credit procurement plan;

10 and

11 (III) any value of monetized federal tax

12 credits, direct payments, or similar subsidy

13 provided to the carbon-free energy resource from

14 any unit of government that is not already

15 reflected in energy prices.

16 If the price-per-megawatt-hour calculation

17 performed under item (iii) of this subparagraph (C)

18 for a given delivery year results in a net positive

19 value, then the electric utility counterparty to the

20 contract shall multiply such net value by the

21 applicable contract quantity and remit the amount to

22 the supplier.

23 To protect retail customers from retail rate

24 impacts that may arise upon the initiation of carbon

25 policy changes, if the price-per-megawatt-hour

26 calculation performed under item (iii) of this

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1 subparagraph (C) for a given delivery year results in

2 a net negative value, then the supplier counterparty

3 to the contract shall multiply such net value by the

4 applicable contract quantity and remit such amount to

5 the electric utility counterparty. The electric

6 utility shall reflect such amounts remitted by

7 suppliers as a credit on its retail customer bills as

8 soon as practicable.

9 (iv) To ensure that retail customers in Northern

10 Illinois do not pay more for carbon mitigation credits

11 than the value such credits provide, and

12 notwithstanding the provisions of this subsection

13 (d-10), the Agency shall not accept bids for contracts

14 that exceed a customer protection cap equal to the

15 baseline costs of carbon-free energy resources.

16 The baseline costs for the applicable year shall

17 be the following:

18 (I) For the delivery year beginning June 1,

19 2022, the baseline costs shall be an amount equal

20 to $30.30 per megawatt-hour.

21 (II) For the delivery year beginning June 1,

22 2023, the baseline costs shall be an amount equal

23 to $32.50 per megawatt-hour.

24 (III) For the delivery year beginning June 1,

25 2024, the baseline costs shall be an amount equal

26 to $33.43 per megawatt-hour.

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1 (IV) For the delivery year beginning June 1,

2 2025, the baseline costs shall be an amount equal

3 to $33.50 per megawatt-hour.

4 (V) For the delivery year beginning June 1,

5 2026, the baseline costs shall be an amount equal

6 to $34.50 per megawatt-hour.

7 An Environmental Protection Agency consultant

8 forecast, included in a report issued April 14, 2021,

9 projects that a carbon-free energy resource has the

10 opportunity to earn on average approximately $30.28

11 per megawatt-hour, for the sale of energy and capacity

12 during the time period between 2022 and 2027.

13 Therefore, the sale of carbon mitigation credits

14 provides the opportunity to receive an additional

15 amount per megawatt-hour in addition to the projected

16 prices for energy and capacity.

17 Although actual energy and capacity prices may

18 vary from year-to-year, the General Assembly finds

19 that this customer protection cap will help ensure

20 that the cost of carbon mitigation credits will be

21 less than its value, based upon the social cost of

22 carbon identified in the Technical Support Document

23 issued in February 2021 by the U.S. Interagency

24 Working Group on Social Cost of Greenhouse Gases and

25 the PJM Interconnection, LLC carbon dioxide marginal

26 emission rate for 2020, and that a carbon-free energy

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1 resource receiving payment for carbon mitigation

2 credits receives no more than necessary to keep those

3 units in operation.

4 (D) No later than 7 days after the effective date of

5 this amendatory Act of the 102nd General Assembly, the

6 Agency shall publish its proposed carbon mitigation credit

7 procurement plan. The Plan shall provide that winning bids

8 shall be selected by taking into consideration which

9 resources best match public interest criteria that

10 include, but are not limited to, minimizing carbon dioxide

11 emissions that result from electricity consumed in

12 Illinois and minimizing sulfur dioxide, nitrogen oxide,

13 and particulate matter emissions that adversely affect the

14 citizens of this State. The selection of winning bids

15 shall also take into account the incremental environmental

16 benefits resulting from the procurement or procurements,

17 such as any existing environmental benefits that are

18 preserved by a procurement held under this subsection

19 (d-10) and would cease to exist if the procurement were

20 not held, including the preservation of carbon-free energy

21 resources. For those bidders having the same public

22 interest criteria score, the relative ranking of such

23 bidders shall be determined by price. The Plan shall

24 describe in detail how each public interest factor shall

25 be considered and weighted in the bid selection process to

26 ensure that the public interest criteria are applied to

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1 the procurement. The Plan shall, to the extent practical

2 and permissible by federal law, ensure that successful

3 bidders make commercially reasonable efforts to apply for

4 federal tax credits, direct payments, or similar subsidy

5 programs that support carbon-free generation and for which

6 the successful bidder is eligible. Upon publishing of the

7 carbon mitigation credit procurement plan, copies of the

8 plan shall be posted and made publicly available on the

9 Agency's website. All interested parties shall have 7 days

10 following the date of posting to provide comment to the

11 Agency on the plan. All comments shall be posted to the

12 Agency's website. Following the end of the comment period,

13 but no more than 19 days later than the effective date of

14 this amendatory Act of the 102nd General Assembly, the

15 Agency shall revise the plan as necessary based on the

16 comments received and file its carbon mitigation credit

17 procurement plan with the Commission.

18 (E) If the Commission determines that the plan is

19 likely to result in the procurement of cost-effective

20 carbon mitigation credits, then the Commission shall,

21 after notice and hearing and opportunity for comment, but

22 no later than 42 days after the Agency filed the plan,

23 approve the plan or approve it with modification. For

24 purposes of this subsection (d-10), "cost-effective" means

25 carbon mitigation credits that are procured from

26 carbon-free energy resources at prices that are within the

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1 limits specified in this paragraph (3). As part of the

2 Commission's review and acceptance or rejection of the

3 procurement results, the Commission shall, in its public

4 notice of successful bidders:

5 (i) identify how the selected carbon-free energy

6 resources satisfy the public interest criteria

7 described in this paragraph (3) of minimizing carbon

8 dioxide emissions that result from electricity

9 consumed in Illinois and minimizing sulfur dioxide,

10 nitrogen oxide, and particulate matter emissions that

11 adversely affect the citizens of this State;

12 (ii) specifically address how the selection of

13 carbon-free energy resources takes into account the

14 incremental environmental benefits resulting from the

15 procurement, including any existing environmental

16 benefits that are preserved by the procurements held

17 under this amendatory Act of the 102nd General

18 Assembly and would have ceased to exist if the

19 procurements had not been held, such as the

20 preservation of carbon-free energy resources;

21 (iii) quantify the environmental benefit of

22 preserving the carbon-free energy resources procured

23 pursuant to this subsection (d-10), including the

24 following:

25 (I) an assessment value of avoided greenhouse

26 gas emissions measured as the product of the

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1 carbon-free energy resources' output over the

2 contract term, using generally accepted

3 methodologies for the valuation of avoided

4 emissions; and

5 (II) an assessment of costs of replacement

6 with other carbon-free energy resources and

7 renewable energy resources, including wind and

8 photovoltaic generation, based upon an assessment

9 of the prices paid for renewable energy credits

10 through programs and procurements conducted

11 pursuant to subsection (c) of Section 1-75 of this

12 Act, and the additional storage necessary to

13 produce the same or similar capability of matching

14 customer usage patterns.

15 (F) The procurements described in this paragraph (3),

16 including, but not limited to, the execution of all

17 contracts procured, shall be completed no later than

18 December 3, 2021. The procurement and plan approval

19 processes required by this paragraph (3) shall be

20 conducted in conjunction with the procurement and plan

21 approval processes required by Section 16-111.5 of the

22 Public Utilities Act, to the extent practicable. However,

23 the Agency and Commission may, as appropriate, modify the

24 various dates and timelines under this subparagraph and

25 subparagraphs (D) and (E) of this paragraph (3) to meet

26 the December 3, 2021 contract execution deadline.

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1 Following the completion of such procurements, and

2 consistent with this paragraph (3), the Agency shall

3 calculate the payments to be made under each contract in a

4 timely fashion.

5 (F-1) Costs incurred by the electric utility pursuant

6 to a contract authorized by this subsection (d-10) shall

7 be deemed prudently incurred and reasonable in amount, and

8 the electric utility shall be entitled to full cost

9 recovery pursuant to a tariff or tariffs filed with the

10 Commission.

11 (G) The counterparty electric utility shall retire all

12 carbon mitigation credits used to comply with the

13 requirements of this subsection (d-10).

14 (H) If a carbon-free energy resource is sold to

15 another owner, the rights, obligations, and commitments

16 under this subsection (d-10) shall continue to the

17 subsequent owner.

18 (I) This subsection (d-10) shall become inoperative on

19 January 1, 2028.

20 (e) The draft procurement plans are subject to public

21 comment, as required by Section 16-111.5 of the Public

22 Utilities Act.

23 (f) The Agency shall submit the final procurement plan to

24 the Commission. The Agency shall revise a procurement plan if

25 the Commission determines that it does not meet the standards

26 set forth in Section 16-111.5 of the Public Utilities Act.

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1 (g) The Agency shall assess fees to each affected utility

2 to recover the costs incurred in preparation of the annual

3 procurement plan for the utility.

4 (h) The Agency shall assess fees to each bidder to recover

5 the costs incurred in connection with a competitive

6 procurement process.

7 (i) A renewable energy credit, carbon emission credit,

8 zero emission credit, or carbon mitigation credit can only be

9 used once to comply with a single portfolio or other standard

10 as set forth in subsection (c), subsection (d), or subsection

11 (d-5) of this Section, respectively. A renewable energy

12 credit, carbon emission credit, zero emission credit, or

13 carbon mitigation credit cannot be used to satisfy the

14 requirements of more than one standard. If more than one type

15 of credit is issued for the same megawatt hour of energy, only

16 one credit can be used to satisfy the requirements of a single

17 standard. After such use, the credit must be retired together

18 with any other credits issued for the same megawatt hour of

19 energy.

20 (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;

21 102-662, eff. 9-15-21.)

22 (Text of Section after amendment by P.A. 103-380)

23 Sec. 1-75. Planning and Procurement Bureau. The Planning

24 and Procurement Bureau has the following duties and

25 responsibilities:

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1 (a) The Planning and Procurement Bureau shall each year,

2 beginning in 2008, develop procurement plans and conduct

3 competitive procurement processes in accordance with the

4 requirements of Section 16-111.5 of the Public Utilities Act

5 for the eligible retail customers of electric utilities that

6 on December 31, 2005 provided electric service to at least

7 100,000 customers in Illinois. Beginning with the delivery

8 year commencing on June 1, 2017, the Planning and Procurement

9 Bureau shall develop plans and processes for the procurement

10 of zero emission credits from zero emission facilities in

11 accordance with the requirements of subsection (d-5) of this

12 Section. Beginning on the effective date of this amendatory

13 Act of the 102nd General Assembly, the Planning and

14 Procurement Bureau shall develop plans and processes for the

15 procurement of carbon mitigation credits from carbon-free

16 energy resources in accordance with the requirements of

17 subsection (d-10) of this Section. The Planning and

18 Procurement Bureau shall also develop procurement plans and

19 conduct competitive procurement processes in accordance with

20 the requirements of Section 16-111.5 of the Public Utilities

21 Act for the eligible retail customers of small

22 multi-jurisdictional electric utilities that (i) on December

23 31, 2005 served less than 100,000 customers in Illinois and

24 (ii) request a procurement plan for their Illinois

25 jurisdictional load. This Section shall not apply to a small

26 multi-jurisdictional utility until such time as a small

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1 multi-jurisdictional utility requests the Agency to prepare a

2 procurement plan for their Illinois jurisdictional load. For

3 the purposes of this Section, the term "eligible retail

4 customers" has the same definition as found in Section

5 16-111.5(a) of the Public Utilities Act.

6 Beginning with the plan or plans to be implemented in the

7 2017 delivery year, the Agency shall no longer include the

8 procurement of renewable energy resources in the annual

9 procurement plans required by this subsection (a), except as

10 provided in subsection (q) of Section 16-111.5 of the Public

11 Utilities Act, and shall instead develop a long-term renewable

12 resources procurement plan in accordance with subsection (c)

13 of this Section and Section 16-111.5 of the Public Utilities

14 Act.

15 In accordance with subsection (c-5) of this Section, the

16 Planning and Procurement Bureau shall oversee the procurement

17 by electric utilities that served more than 300,000 retail

18 customers in this State as of January 1, 2019 of renewable

19 energy credits from new utility-scale solar projects to be

20 installed, along with energy storage facilities, at or

21 adjacent to the sites of electric generating facilities that,

22 as of January 1, 2016, burned coal as their primary fuel

23 source.

24 (1) The Agency shall each year, beginning in 2008, as

25 needed, issue a request for qualifications for experts or

26 expert consulting firms to develop the procurement plans

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1 in accordance with Section 16-111.5 of the Public

2 Utilities Act. In order to qualify an expert or expert

3 consulting firm must have:

4 (A) direct previous experience assembling

5 large-scale power supply plans or portfolios for

6 end-use customers;

7 (B) an advanced degree in economics, mathematics,

8 engineering, risk management, or a related area of

9 study;

10 (C) 10 years of experience in the electricity

11 sector, including managing supply risk;

12 (D) expertise in wholesale electricity market

13 rules, including those established by the Federal

14 Energy Regulatory Commission and regional transmission

15 organizations;

16 (E) expertise in credit protocols and familiarity

17 with contract protocols;

18 (F) adequate resources to perform and fulfill the

19 required functions and responsibilities; and

20 (G) the absence of a conflict of interest and

21 inappropriate bias for or against potential bidders or

22 the affected electric utilities.

23 (2) The Agency shall each year, as needed, issue a

24 request for qualifications for a procurement administrator

25 to conduct the competitive procurement processes in

26 accordance with Section 16-111.5 of the Public Utilities

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1 Act. In order to qualify an expert or expert consulting

2 firm must have:

3 (A) direct previous experience administering a

4 large-scale competitive procurement process;

5 (B) an advanced degree in economics, mathematics,

6 engineering, or a related area of study;

7 (C) 10 years of experience in the electricity

8 sector, including risk management experience;

9 (D) expertise in wholesale electricity market

10 rules, including those established by the Federal

11 Energy Regulatory Commission and regional transmission

12 organizations;

13 (E) expertise in credit and contract protocols;

14 (F) adequate resources to perform and fulfill the

15 required functions and responsibilities; and

16 (G) the absence of a conflict of interest and

17 inappropriate bias for or against potential bidders or

18 the affected electric utilities.

19 (3) The Agency shall provide affected utilities and

20 other interested parties with the lists of qualified

21 experts or expert consulting firms identified through the

22 request for qualifications processes that are under

23 consideration to develop the procurement plans and to

24 serve as the procurement administrator. The Agency shall

25 also provide each qualified expert's or expert consulting

26 firm's response to the request for qualifications. All

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1 information provided under this subparagraph shall also be

2 provided to the Commission. The Agency may provide by rule

3 for fees associated with supplying the information to

4 utilities and other interested parties. These parties

5 shall, within 5 business days, notify the Agency in

6 writing if they object to any experts or expert consulting

7 firms on the lists. Objections shall be based on:

8 (A) failure to satisfy qualification criteria;

9 (B) identification of a conflict of interest; or

10 (C) evidence of inappropriate bias for or against

11 potential bidders or the affected utilities.

12 The Agency shall remove experts or expert consulting

13 firms from the lists within 10 days if there is a

14 reasonable basis for an objection and provide the updated

15 lists to the affected utilities and other interested

16 parties. If the Agency fails to remove an expert or expert

17 consulting firm from a list, an objecting party may seek

18 review by the Commission within 5 days thereafter by

19 filing a petition, and the Commission shall render a

20 ruling on the petition within 10 days. There is no right of

21 appeal of the Commission's ruling.

22 (4) The Agency shall issue requests for proposals to

23 the qualified experts or expert consulting firms to

24 develop a procurement plan for the affected utilities and

25 to serve as procurement administrator.

26 (5) The Agency shall select an expert or expert

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1 consulting firm to develop procurement plans based on the

2 proposals submitted and shall award contracts of up to 5

3 years to those selected.

4 (6) The Agency shall select an expert or expert

5 consulting firm, with approval of the Commission, to serve

6 as procurement administrator based on the proposals

7 submitted. If the Commission rejects, within 5 days, the

8 Agency's selection, the Agency shall submit another

9 recommendation within 3 days based on the proposals

10 submitted. The Agency shall award a 5-year contract to the

11 expert or expert consulting firm so selected with

12 Commission approval.

13 (b) The experts or expert consulting firms retained by the

14 Agency shall, as appropriate, prepare procurement plans, and

15 conduct a competitive procurement process as prescribed in

16 Section 16-111.5 of the Public Utilities Act, to ensure

17 adequate, reliable, affordable, efficient, and environmentally

18 sustainable electric service at the lowest total cost over

19 time, taking into account any benefits of price stability, for

20 eligible retail customers of electric utilities that on

21 December 31, 2005 provided electric service to at least

22 100,000 customers in the State of Illinois, and for eligible

23 Illinois retail customers of small multi-jurisdictional

24 electric utilities that (i) on December 31, 2005 served less

25 than 100,000 customers in Illinois and (ii) request a

26 procurement plan for their Illinois jurisdictional load.

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1 (c) Renewable portfolio standard.

2 (1)(A) The Agency shall develop a long-term renewable

3 resources procurement plan that shall include procurement

4 programs and competitive procurement events necessary to

5 meet the goals set forth in this subsection (c). The

6 initial long-term renewable resources procurement plan

7 shall be released for comment no later than 160 days after

8 June 1, 2017 (the effective date of Public Act 99-906).

9 The Agency shall review, and may revise on an expedited

10 basis, the long-term renewable resources procurement plan

11 at least every 2 years, which shall be conducted in

12 conjunction with the procurement plan under Section

13 16-111.5 of the Public Utilities Act to the extent

14 practicable to minimize administrative expense. No later

15 than 120 days after the effective date of this amendatory

16 Act of the 103rd General Assembly, the Agency shall

17 release for comment a revision to the long-term renewable

18 resources procurement plan, updating elements of the most

19 recently approved plan as needed to comply with this

20 amendatory Act of the 103rd General Assembly, and any

21 long-term renewable resources procurement plan update

22 published by the Agency but not yet approved by the

23 Illinois Commerce Commission shall be withdrawn. The

24 long-term renewable resources procurement plans shall be

25 subject to review and approval by the Commission under

26 Section 16-111.5 of the Public Utilities Act.

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1 (B) Subject to subparagraph (F) of this paragraph (1),

2 the long-term renewable resources procurement plan shall

3 attempt to meet the goals for procurement of renewable

4 energy credits at levels of at least the following overall

5 percentages: 13% by the 2017 delivery year; increasing by

6 at least 1.5% each delivery year thereafter to at least

7 25% by the 2025 delivery year; increasing by at least 3%

8 each delivery year thereafter to at least 40% by the 2030

9 delivery year, and continuing at no less than 40% for each

10 delivery year thereafter. The Agency shall attempt to

11 procure 50% by delivery year 2040. The Agency shall

12 determine the annual increase between delivery year 2030

13 and delivery year 2040, if any, taking into account energy

14 demand, other energy resources, and other public policy

15 goals. In the event of a conflict between these goals and

16 the new wind, new photovoltaic, and hydropower procurement

17 requirements described in items (i) through (iii) of

18 subparagraph (C) of this paragraph (1), the long-term plan

19 shall prioritize compliance with the new wind, new

20 photovoltaic, and hydropower procurement requirements

21 described in items (i) through (iii) of subparagraph (C)

22 of this paragraph (1) over the annual percentage targets

23 described in this subparagraph (B). The Agency shall not

24 comply with the annual percentage targets described in

25 this subparagraph (B) by procuring renewable energy

26 credits that are unlikely to lead to the development of

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1 new renewable resources or new, modernized, or retooled

2 hydropower facilities.

3 For the delivery year beginning June 1, 2017, the

4 procurement plan shall attempt to include, subject to the

5 prioritization outlined in this subparagraph (B),

6 cost-effective renewable energy resources equal to at

7 least 13% of each utility's load for eligible retail

8 customers and 13% of the applicable portion of each

9 utility's load for retail customers who are not eligible

10 retail customers, which applicable portion shall equal 50%

11 of the utility's load for retail customers who are not

12 eligible retail customers on February 28, 2017.

13 For the delivery year beginning June 1, 2018, the

14 procurement plan shall attempt to include, subject to the

15 prioritization outlined in this subparagraph (B),

16 cost-effective renewable energy resources equal to at

17 least 14.5% of each utility's load for eligible retail

18 customers and 14.5% of the applicable portion of each

19 utility's load for retail customers who are not eligible

20 retail customers, which applicable portion shall equal 75%

21 of the utility's load for retail customers who are not

22 eligible retail customers on February 28, 2017.

23 For the delivery year beginning June 1, 2019, and for

24 each year thereafter, the procurement plans shall attempt

25 to include, subject to the prioritization outlined in this

26 subparagraph (B), cost-effective renewable energy

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1 resources equal to a minimum percentage of each utility's

2 load for all retail customers as follows: 16% by June 1,

3 2019; increasing by 1.5% each year thereafter to 25% by

4 June 1, 2025; and 25% by June 1, 2026; increasing by at

5 least 3% each delivery year thereafter to at least 40% by

6 the 2030 delivery year, and continuing at no less than 40%

7 for each delivery year thereafter. The Agency shall

8 attempt to procure 50% by delivery year 2040. The Agency

9 shall determine the annual increase between delivery year

10 2030 and delivery year 2040, if any, taking into account

11 energy demand, other energy resources, and other public

12 policy goals.

13 For each delivery year, the Agency shall first

14 recognize each utility's obligations for that delivery

15 year under existing contracts. Any renewable energy

16 credits under existing contracts, including renewable

17 energy credits as part of renewable energy resources,

18 shall be used to meet the goals set forth in this

19 subsection (c) for the delivery year.

20 (C) The long-term renewable resources procurement plan

21 described in subparagraph (A) of this paragraph (1) shall

22 include the procurement of renewable energy credits from

23 new projects pursuant to the following terms:

24 (i) At least 10,000,000 renewable energy credits

25 delivered annually by the end of the 2021 delivery

26 year, and increasing ratably to reach 45,000,000

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1 renewable energy credits delivered annually from new

2 wind and solar projects by the end of delivery year

3 2030 such that the goals in subparagraph (B) of this

4 paragraph (1) are met entirely by procurements of

5 renewable energy credits from new wind and

6 photovoltaic projects. Of that amount, to the extent

7 possible, the Agency shall procure 45% from wind and

8 hydropower projects and 55% from photovoltaic

9 projects. Of the amount to be procured from

10 photovoltaic projects, the Agency shall procure: at

11 least 50% from solar photovoltaic projects using the

12 program outlined in subparagraph (K) of this paragraph

13 (1) from distributed renewable energy generation

14 devices or community renewable generation projects; at

15 least 47% from utility-scale solar projects; at least

16 3% from brownfield site photovoltaic projects that are

17 not community renewable generation projects.

18 In developing the long-term renewable resources

19 procurement plan, the Agency shall consider other

20 approaches, in addition to competitive procurements,

21 that can be used to procure renewable energy credits

22 from brownfield site photovoltaic projects and thereby

23 help return blighted or contaminated land to

24 productive use while enhancing public health and the

25 well-being of Illinois residents, including those in

26 environmental justice communities, as defined using

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1 existing methodologies and findings used by the Agency

2 and its Administrator in its Illinois Solar for All

3 Program. The Agency shall also consider other

4 approaches, in addition to competitive procurements,

5 to procure renewable energy credits from new and

6 existing hydropower facilities to support the

7 development and maintenance of these facilities. The

8 Agency shall explore options to convert existing dams

9 but shall not consider approaches to develop new dams

10 where they do not already exist.

11 (ii) In any given delivery year, if forecasted

12 expenses are less than the maximum budget available

13 under subparagraph (E) of this paragraph (1), the

14 Agency shall continue to procure new renewable energy

15 credits until that budget is exhausted in the manner

16 outlined in item (i) of this subparagraph (C).

17 (iii) For purposes of this Section:

18 "New wind projects" means wind renewable energy

19 facilities that are energized after June 1, 2017 for

20 the delivery year commencing June 1, 2017.

21 "New photovoltaic projects" means photovoltaic

22 renewable energy facilities that are energized after

23 June 1, 2017. Photovoltaic projects developed under

24 Section 1-56 of this Act shall not apply towards the

25 new photovoltaic project requirements in this

26 subparagraph (C).

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1 For purposes of calculating whether the Agency has

2 procured enough new wind and solar renewable energy

3 credits required by this subparagraph (C), renewable

4 energy facilities that have a multi-year renewable

5 energy credit delivery contract with the utility

6 through at least delivery year 2030 shall be

7 considered new, however no renewable energy credits

8 from contracts entered into before June 1, 2021 shall

9 be used to calculate whether the Agency has procured

10 the correct proportion of new wind and new solar

11 contracts described in this subparagraph (C) for

12 delivery year 2021 and thereafter.

13 (D) Renewable energy credits shall be cost effective.

14 For purposes of this subsection (c), "cost effective"

15 means that the costs of procuring renewable energy

16 resources do not cause the limit stated in subparagraph

17 (E) of this paragraph (1) to be exceeded and, for

18 renewable energy credits procured through a competitive

19 procurement event, do not exceed benchmarks based on

20 market prices for like products in the region. For

21 purposes of this subsection (c), "like products" means

22 contracts for renewable energy credits from the same or

23 substantially similar technology, same or substantially

24 similar vintage (new or existing), the same or

25 substantially similar quantity, and the same or

26 substantially similar contract length and structure.

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1 Benchmarks shall reflect development, financing, or

2 related costs resulting from requirements imposed through

3 other provisions of State law, including, but not limited

4 to, requirements in subparagraphs (P) and (Q) of this

5 paragraph (1) and the Renewable Energy Facilities

6 Agricultural Impact Mitigation Act. Confidential

7 benchmarks shall be developed by the procurement

8 administrator, in consultation with the Commission staff,

9 Agency staff, and the procurement monitor and shall be

10 subject to Commission review and approval. If price

11 benchmarks for like products in the region are not

12 available, the procurement administrator shall establish

13 price benchmarks based on publicly available data on

14 regional technology costs and expected current and future

15 regional energy prices. The benchmarks in this Section

16 shall not be used to curtail or otherwise reduce

17 contractual obligations entered into by or through the

18 Agency prior to June 1, 2017 (the effective date of Public

19 Act 99-906).

20 (E) For purposes of this subsection (c), the required

21 procurement of cost-effective renewable energy resources

22 for a particular year commencing prior to June 1, 2017

23 shall be measured as a percentage of the actual amount of

24 electricity (megawatt-hours) supplied by the electric

25 utility to eligible retail customers in the delivery year

26 ending immediately prior to the procurement, and, for

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1 delivery years commencing on and after June 1, 2017, the

2 required procurement of cost-effective renewable energy

3 resources for a particular year shall be measured as a

4 percentage of the actual amount of electricity

5 (megawatt-hours) delivered by the electric utility in the

6 delivery year ending immediately prior to the procurement,

7 to all retail customers in its service territory. For

8 purposes of this subsection (c), the amount paid per

9 kilowatthour means the total amount paid for electric

10 service expressed on a per kilowatthour basis. For

11 purposes of this subsection (c), the total amount paid for

12 electric service includes without limitation amounts paid

13 for supply, transmission, capacity, distribution,

14 surcharges, and add-on taxes.

15 Notwithstanding the requirements of this subsection

16 (c), the total of renewable energy resources procured

17 under the procurement plan for any single year shall be

18 subject to the limitations of this subparagraph (E). Such

19 procurement shall be reduced for all retail customers

20 based on the amount necessary to limit the annual

21 estimated average net increase due to the costs of these

22 resources included in the amounts paid by eligible retail

23 customers in connection with electric service to no more

24 than 4.25% of the amount paid per kilowatthour by those

25 customers during the year ending May 31, 2009. To arrive

26 at a maximum dollar amount of renewable energy resources

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1 to be procured for the particular delivery year, the

2 resulting per kilowatthour amount shall be applied to the

3 actual amount of kilowatthours of electricity delivered,

4 or applicable portion of such amount as specified in

5 paragraph (1) of this subsection (c), as applicable, by

6 the electric utility in the delivery year immediately

7 prior to the procurement to all retail customers in its

8 service territory. The calculations required by this

9 subparagraph (E) shall be made only once for each delivery

10 year at the time that the renewable energy resources are

11 procured. Once the determination as to the amount of

12 renewable energy resources to procure is made based on the

13 calculations set forth in this subparagraph (E) and the

14 contracts procuring those amounts are executed, no

15 subsequent rate impact determinations shall be made and no

16 adjustments to those contract amounts shall be allowed.

17 All costs incurred under such contracts shall be fully

18 recoverable by the electric utility as provided in this

19 Section.

20 (F) If the limitation on the amount of renewable

21 energy resources procured in subparagraph (E) of this

22 paragraph (1) prevents the Agency from meeting all of the

23 goals in this subsection (c), the Agency's long-term plan

24 shall prioritize compliance with the requirements of this

25 subsection (c) regarding renewable energy credits in the

26 following order:

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1 (i) renewable energy credits under existing

2 contractual obligations as of June 1, 2021;

3 (i-5) funding for the Illinois Solar for All

4 Program, as described in subparagraph (O) of this

5 paragraph (1);

6 (ii) renewable energy credits necessary to comply

7 with the new wind and new photovoltaic procurement

8 requirements described in items (i) through (iii) of

9 subparagraph (C) of this paragraph (1); and

10 (iii) renewable energy credits necessary to meet

11 the remaining requirements of this subsection (c).

12 (G) The following provisions shall apply to the

13 Agency's procurement of renewable energy credits under

14 this subsection (c):

15 (i) Notwithstanding whether a long-term renewable

16 resources procurement plan has been approved, the

17 Agency shall conduct an initial forward procurement

18 for renewable energy credits from new utility-scale

19 wind projects within 160 days after June 1, 2017 (the

20 effective date of Public Act 99-906). For the purposes

21 of this initial forward procurement, the Agency shall

22 solicit 15-year contracts for delivery of 1,000,000

23 renewable energy credits delivered annually from new

24 utility-scale wind projects to begin delivery on June

25 1, 2019, if available, but not later than June 1, 2021,

26 unless the project has delays in the establishment of

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1 an operating interconnection with the applicable

2 transmission or distribution system as a result of the

3 actions or inactions of the transmission or

4 distribution provider, or other causes for force

5 majeure as outlined in the procurement contract, in

6 which case, not later than June 1, 2022. Payments to

7 suppliers of renewable energy credits shall commence

8 upon delivery. Renewable energy credits procured under

9 this initial procurement shall be included in the

10 Agency's long-term plan and shall apply to all

11 renewable energy goals in this subsection (c).

12 (ii) Notwithstanding whether a long-term renewable

13 resources procurement plan has been approved, the

14 Agency shall conduct an initial forward procurement

15 for renewable energy credits from new utility-scale

16 solar projects and brownfield site photovoltaic

17 projects within one year after June 1, 2017 (the

18 effective date of Public Act 99-906). For the purposes

19 of this initial forward procurement, the Agency shall

20 solicit 15-year contracts for delivery of 1,000,000

21 renewable energy credits delivered annually from new

22 utility-scale solar projects and brownfield site

23 photovoltaic projects to begin delivery on June 1,

24 2019, if available, but not later than June 1, 2021,

25 unless the project has delays in the establishment of

26 an operating interconnection with the applicable

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1 transmission or distribution system as a result of the

2 actions or inactions of the transmission or

3 distribution provider, or other causes for force

4 majeure as outlined in the procurement contract, in

5 which case, not later than June 1, 2022. The Agency may

6 structure this initial procurement in one or more

7 discrete procurement events. Payments to suppliers of

8 renewable energy credits shall commence upon delivery.

9 Renewable energy credits procured under this initial

10 procurement shall be included in the Agency's

11 long-term plan and shall apply to all renewable energy

12 goals in this subsection (c).

13 (iii) Notwithstanding whether the Commission has

14 approved the periodic long-term renewable resources

15 procurement plan revision described in Section

16 16-111.5 of the Public Utilities Act, the Agency shall

17 conduct at least one subsequent forward procurement

18 for renewable energy credits from new utility-scale

19 wind projects, new utility-scale solar projects, and

20 new brownfield site photovoltaic projects within 240

21 days after the effective date of this amendatory Act

22 of the 102nd General Assembly in quantities necessary

23 to meet the requirements of subparagraph (C) of this

24 paragraph (1) through the delivery year beginning June

25 1, 2021.

26 (iv) Notwithstanding whether the Commission has

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1 approved the periodic long-term renewable resources

2 procurement plan revision described in Section

3 16-111.5 of the Public Utilities Act, the Agency shall

4 open capacity for each category in the Adjustable

5 Block program within 90 days after the effective date

6 of this amendatory Act of the 102nd General Assembly

7 manner:

8 (1) The Agency shall open the first block of

9 annual capacity for the category described in item

10 (i) of subparagraph (K) of this paragraph (1). The

11 first block of annual capacity for item (i) shall

12 be for at least 75 megawatts of total nameplate

13 capacity. The price of the renewable energy credit

14 for this block of capacity shall be 4% less than

15 the price of the last open block in this category.

16 Projects on a waitlist shall be awarded contracts

17 first in the order in which they appear on the

18 waitlist. Notwithstanding anything to the

19 contrary, for those renewable energy credits that

20 qualify and are procured under this subitem (1) of

21 this item (iv), the renewable energy credit

22 delivery contract value shall be paid in full,

23 based on the estimated generation during the first

24 15 years of operation, by the contracting

25 utilities at the time that the facility producing

26 the renewable energy credits is interconnected at

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1 the distribution system level of the utility and

2 verified as energized and in compliance by the

3 Program Administrator. The electric utility shall

4 receive and retire all renewable energy credits

5 generated by the project for the first 15 years of

6 operation. Renewable energy credits generated by

7 the project thereafter shall not be transferred

8 under the renewable energy credit delivery

9 contract with the counterparty electric utility.

10 (2) The Agency shall open the first block of

11 annual capacity for the category described in item

12 (ii) of subparagraph (K) of this paragraph (1).

13 The first block of annual capacity for item (ii)

14 shall be for at least 75 megawatts of total

15 nameplate capacity.

16 (A) The price of the renewable energy

17 credit for any project on a waitlist for this

18 category before the opening of this block

19 shall be 4% less than the price of the last

20 open block in this category. Projects on the

21 waitlist shall be awarded contracts first in

22 the order in which they appear on the

23 waitlist. Any projects that are less than or

24 equal to 25 kilowatts in size on the waitlist

25 for this capacity shall be moved to the

26 waitlist for paragraph (1) of this item (iv).

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1 Notwithstanding anything to the contrary,

2 projects that were on the waitlist prior to

3 opening of this block shall not be required to

4 be in compliance with the requirements of

5 subparagraph (Q) of this paragraph (1) of this

6 subsection (c). Notwithstanding anything to

7 the contrary, for those renewable energy

8 credits procured from projects that were on

9 the waitlist for this category before the

10 opening of this block 20% of the renewable

11 energy credit delivery contract value, based

12 on the estimated generation during the first

13 15 years of operation, shall be paid by the

14 contracting utilities at the time that the

15 facility producing the renewable energy

16 credits is interconnected at the distribution

17 system level of the utility and verified as

18 energized by the Program Administrator. The

19 remaining portion shall be paid ratably over

20 the subsequent 4-year period. The electric

21 utility shall receive and retire all renewable

22 energy credits generated by the project during

23 the first 15 years of operation. Renewable

24 energy credits generated by the project

25 thereafter shall not be transferred under the

26 renewable energy credit delivery contract with

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1 the counterparty electric utility.

2 (B) The price of renewable energy credits

3 for any project not on the waitlist for this

4 category before the opening of the block shall

5 be determined and published by the Agency.

6 Projects not on a waitlist as of the opening

7 of this block shall be subject to the

8 requirements of subparagraph (Q) of this

9 paragraph (1), as applicable. Projects not on

10 a waitlist as of the opening of this block

11 shall be subject to the contract provisions

12 outlined in item (iii) of subparagraph (L) of

13 this paragraph (1). The Agency shall strive to

14 publish updated prices and an updated

15 renewable energy credit delivery contract as

16 quickly as possible.

17 (3) For opening the first 2 blocks of annual

18 capacity for projects participating in item (iii)

19 of subparagraph (K) of paragraph (1) of subsection

20 (c), projects shall be selected exclusively from

21 those projects on the ordinal waitlists of

22 community renewable generation projects

23 established by the Agency based on the status of

24 those ordinal waitlists as of December 31, 2020,

25 and only those projects previously determined to

26 be eligible for the Agency's April 2019 community

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1 solar project selection process.

2 The first 2 blocks of annual capacity for item

3 (iii) shall be for 250 megawatts of total

4 nameplate capacity, with both blocks opening

5 simultaneously under the schedule outlined in the

6 paragraphs below. Projects shall be selected as

7 follows:

8 (A) The geographic balance of selected

9 projects shall follow the Group classification

10 found in the Agency's Revised Long-Term

11 Renewable Resources Procurement Plan, with 70%

12 of capacity allocated to projects on the Group

13 B waitlist and 30% of capacity allocated to

14 projects on the Group A waitlist.

15 (B) Contract awards for waitlisted

16 projects shall be allocated proportionate to

17 the total nameplate capacity amount across

18 both ordinal waitlists associated with that

19 applicant firm or its affiliates, subject to

20 the following conditions.

21 (i) Each applicant firm having a

22 waitlisted project eligible for selection

23 shall receive no less than 500 kilowatts

24 in awarded capacity across all groups, and

25 no approved vendor may receive more than

26 20% of each Group's waitlist allocation.

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1 (ii) Each applicant firm, upon

2 receiving an award of program capacity

3 proportionate to its waitlisted capacity,

4 may then determine which waitlisted

5 projects it chooses to be selected for a

6 contract award up to that capacity amount.

7 (iii) Assuming all other program

8 requirements are met, applicant firms may

9 adjust the nameplate capacity of applicant

10 projects without losing waitlist

11 eligibility, so long as no project is

12 greater than 2,000 kilowatts in size.

13 (iv) Assuming all other program

14 requirements are met, applicant firms may

15 adjust the expected production associated

16 with applicant projects, subject to

17 verification by the Program Administrator.

18 (C) After a review of affiliate

19 information and the current ordinal waitlists,

20 the Agency shall announce the nameplate

21 capacity award amounts associated with

22 applicant firms no later than 90 days after

23 the effective date of this amendatory Act of

24 the 102nd General Assembly.

25 (D) Applicant firms shall submit their

26 portfolio of projects used to satisfy those

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1 contract awards no less than 90 days after the

2 Agency's announcement. The total nameplate

3 capacity of all projects used to satisfy that

4 portfolio shall be no greater than the

5 Agency's nameplate capacity award amount

6 associated with that applicant firm. An

7 applicant firm may decline, in whole or in

8 part, its nameplate capacity award without

9 penalty, with such unmet capacity rolled over

10 to the next block opening for project

11 selection under item (iii) of subparagraph (K)

12 of this subsection (c). Any projects not

13 included in an applicant firm's portfolio may

14 reapply without prejudice upon the next block

15 reopening for project selection under item

16 (iii) of subparagraph (K) of this subsection

17 (c).

18 (E) The renewable energy credit delivery

19 contract shall be subject to the contract and

20 payment terms outlined in item (iv) of

21 subparagraph (L) of this subsection (c).

22 Contract instruments used for this

23 subparagraph shall contain the following

24 terms:

25 (i) Renewable energy credit prices

26 shall be fixed, without further adjustment

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1 under any other provision of this Act or

2 for any other reason, at 10% lower than

3 prices applicable to the last open block

4 for this category, inclusive of any adders

5 available for achieving a minimum of 50%

6 of subscribers to the project's nameplate

7 capacity being residential or small

8 commercial customers with subscriptions of

9 below 25 kilowatts in size;

10 (ii) A requirement that a minimum of

11 50% of subscribers to the project's

12 nameplate capacity be residential or small

13 commercial customers with subscriptions of

14 below 25 kilowatts in size;

15 (iii) Permission for the ability of a

16 contract holder to substitute projects

17 with other waitlisted projects without

18 penalty should a project receive a

19 non-binding estimate of costs to construct

20 the interconnection facilities and any

21 required distribution upgrades associated

22 with that project of greater than 30 cents

23 per watt AC of that project's nameplate

24 capacity. In developing the applicable

25 contract instrument, the Agency may

26 consider whether other circumstances

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1 outside of the control of the applicant

2 firm should also warrant project

3 substitution rights.

4 The Agency shall publish a finalized

5 updated renewable energy credit delivery

6 contract developed consistent with these terms

7 and conditions no less than 30 days before

8 applicant firms must submit their portfolio of

9 projects pursuant to item (D).

10 (F) To be eligible for an award, the

11 applicant firm shall certify that not less

12 than prevailing wage, as determined pursuant

13 to the Illinois Prevailing Wage Act, was or

14 will be paid to employees who are engaged in

15 construction activities associated with a

16 selected project.

17 (4) The Agency shall open the first block of

18 annual capacity for the category described in item

19 (iv) of subparagraph (K) of this paragraph (1).

20 The first block of annual capacity for item (iv)

21 shall be for at least 50 megawatts of total

22 nameplate capacity. Renewable energy credit prices

23 shall be fixed, without further adjustment under

24 any other provision of this Act or for any other

25 reason, at the price in the last open block in the

26 category described in item (ii) of subparagraph

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1 (K) of this paragraph (1). Pricing for future

2 blocks of annual capacity for this category may be

3 adjusted in the Agency's second revision to its

4 Long-Term Renewable Resources Procurement Plan.

5 Projects in this category shall be subject to the

6 contract terms outlined in item (iv) of

7 subparagraph (L) of this paragraph (1).

8 (5) The Agency shall open the equivalent of 2

9 years of annual capacity for the category

10 described in item (v) of subparagraph (K) of this

11 paragraph (1). The first block of annual capacity

12 for item (v) shall be for at least 10 megawatts of

13 total nameplate capacity. Notwithstanding the

14 provisions of item (v) of subparagraph (K) of this

15 paragraph (1), for the purpose of this initial

16 block, the agency shall accept new project

17 applications intended to increase the diversity of

18 areas hosting community solar projects, the

19 business models of projects, and the size of

20 projects, as described by the Agency in its

21 long-term renewable resources procurement plan

22 that is approved as of the effective date of this

23 amendatory Act of the 102nd General Assembly.

24 Projects in this category shall be subject to the

25 contract terms outlined in item (iii) of

26 subsection (L) of this paragraph (1).

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1 (6) The Agency shall open the first blocks of

2 annual capacity for the category described in item

3 (vi) of subparagraph (K) of this paragraph (1),

4 with allocations of capacity within the block

5 generally matching the historical share of block

6 capacity allocated between the category described

7 in items (i) and (ii) of subparagraph (K) of this

8 paragraph (1). The first two blocks of annual

9 capacity for item (vi) shall be for at least 75

10 megawatts of total nameplate capacity. The price

11 of renewable energy credits for the blocks of

12 capacity shall be 4% less than the price of the

13 last open blocks in the categories described in

14 items (i) and (ii) of subparagraph (K) of this

15 paragraph (1). Pricing for future blocks of annual

16 capacity for this category may be adjusted in the

17 Agency's second revision to its Long-Term

18 Renewable Resources Procurement Plan. Projects in

19 this category shall be subject to the applicable

20 contract terms outlined in items (ii) and (iii) of

21 subparagraph (L) of this paragraph (1).

22 (v) Upon the effective date of this amendatory Act

23 of the 102nd General Assembly, for all competitive

24 procurements and any procurements of renewable energy

25 credit from new utility-scale wind and new

26 utility-scale photovoltaic projects, the Agency shall

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1 procure indexed renewable energy credits and direct

2 respondents to offer a strike price.

3 (1) The purchase price of the indexed

4 renewable energy credit payment shall be

5 calculated for each settlement period. That

6 payment, for any settlement period, shall be equal

7 to the difference resulting from subtracting the

8 strike price from the index price for that

9 settlement period. If this difference results in a

10 negative number, the indexed REC counterparty

11 shall owe the seller the absolute value multiplied

12 by the quantity of energy produced in the relevant

13 settlement period. If this difference results in a

14 positive number, the seller shall owe the indexed

15 REC counterparty this amount multiplied by the

16 quantity of energy produced in the relevant

17 settlement period.

18 (2) Parties shall cash settle every month,

19 summing up all settlements (both positive and

20 negative, if applicable) for the prior month.

21 (3) To ensure funding in the annual budget

22 established under subparagraph (E) for indexed

23 renewable energy credit procurements for each year

24 of the term of such contracts, which must have a

25 minimum tenure of 20 calendar years, the

26 procurement administrator, Agency, Commission

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1 staff, and procurement monitor shall quantify the

2 annual cost of the contract by utilizing an

3 industry-standard, third-party forward price curve

4 for energy at the appropriate hub or load zone,

5 including the estimated magnitude and timing of

6 the price effects related to federal carbon

7 controls. Each forward price curve shall contain a

8 specific value of the forecasted market price of

9 electricity for each annual delivery year of the

10 contract. For procurement planning purposes, the

11 impact on the annual budget for the cost of

12 indexed renewable energy credits for each delivery

13 year shall be determined as the expected annual

14 contract expenditure for that year, equaling the

15 difference between (i) the sum across all relevant

16 contracts of the applicable strike price

17 multiplied by contract quantity and (ii) the sum

18 across all relevant contracts of the forward price

19 curve for the applicable load zone for that year

20 multiplied by contract quantity. The contracting

21 utility shall not assume an obligation in excess

22 of the estimated annual cost of the contracts for

23 indexed renewable energy credits. Forward curves

24 shall be revised on an annual basis as updated

25 forward price curves are released and filed with

26 the Commission in the proceeding approving the

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1 Agency's most recent long-term renewable resources

2 procurement plan. If the expected contract spend

3 is higher or lower than the total quantity of

4 contracts multiplied by the forward price curve

5 value for that year, the forward price curve shall

6 be updated by the procurement administrator, in

7 consultation with the Agency, Commission staff,

8 and procurement monitors, using then-currently

9 available price forecast data and additional

10 budget dollars shall be obligated or reobligated

11 as appropriate.

12 (4) To ensure that indexed renewable energy

13 credit prices remain predictable and affordable,

14 the Agency may consider the institution of a price

15 collar on REC prices paid under indexed renewable

16 energy credit procurements establishing floor and

17 ceiling REC prices applicable to indexed REC

18 contract prices. Any price collars applicable to

19 indexed REC procurements shall be proposed by the

20 Agency through its long-term renewable resources

21 procurement plan.

22 (vi) All procurements under this subparagraph (G),

23 including the procurement of renewable energy credits

24 from hydropower facilities, shall comply with the

25 geographic requirements in subparagraph (I) of this

26 paragraph (1) and shall follow the procurement

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1 processes and procedures described in this Section and

2 Section 16-111.5 of the Public Utilities Act to the

3 extent practicable, and these processes and procedures

4 may be expedited to accommodate the schedule

5 established by this subparagraph (G).

6 (vii) On and after the effective date of this

7 amendatory Act of the 103rd General Assembly, for all

8 procurements of renewable energy credits from

9 hydropower facilities, the Agency shall establish

10 contract terms designed to optimize existing

11 hydropower facilities through modernization or

12 retooling and establish new hydropower facilities at

13 existing dams. Procurements made under this item (vii)

14 shall prioritize projects located in designated

15 environmental justice communities, as defined in

16 subsection (b) of Section 1-56 of this Act, or in

17 projects located in units of local government with

18 median incomes that do not exceed 82% of the median

19 income of the State.

20 (H) The procurement of renewable energy resources for

21 a given delivery year shall be reduced as described in

22 this subparagraph (H) if an alternative retail electric

23 supplier meets the requirements described in this

24 subparagraph (H).

25 (i) Within 45 days after June 1, 2017 (the

26 effective date of Public Act 99-906), an alternative

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1 retail electric supplier or its successor shall submit

2 an informational filing to the Illinois Commerce

3 Commission certifying that, as of December 31, 2015,

4 the alternative retail electric supplier owned one or

5 more electric generating facilities that generates

6 renewable energy resources as defined in Section 1-10

7 of this Act, provided that such facilities are not

8 powered by wind or photovoltaics, and the facilities

9 generate one renewable energy credit for each

10 megawatthour of energy produced from the facility.

11 The informational filing shall identify each

12 facility that was eligible to satisfy the alternative

13 retail electric supplier's obligations under Section

14 16-115D of the Public Utilities Act as described in

15 this item (i).

16 (ii) For a given delivery year, the alternative

17 retail electric supplier may elect to supply its

18 retail customers with renewable energy credits from

19 the facility or facilities described in item (i) of

20 this subparagraph (H) that continue to be owned by the

21 alternative retail electric supplier.

22 (iii) The alternative retail electric supplier

23 shall notify the Agency and the applicable utility, no

24 later than February 28 of the year preceding the

25 applicable delivery year or 15 days after June 1, 2017

26 (the effective date of Public Act 99-906), whichever

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1 is later, of its election under item (ii) of this

2 subparagraph (H) to supply renewable energy credits to

3 retail customers of the utility. Such election shall

4 identify the amount of renewable energy credits to be

5 supplied by the alternative retail electric supplier

6 to the utility's retail customers and the source of

7 the renewable energy credits identified in the

8 informational filing as described in item (i) of this

9 subparagraph (H), subject to the following

10 limitations:

11 For the delivery year beginning June 1, 2018,

12 the maximum amount of renewable energy credits to

13 be supplied by an alternative retail electric

14 supplier under this subparagraph (H) shall be 68%

15 multiplied by 25% multiplied by 14.5% multiplied

16 by the amount of metered electricity

17 (megawatt-hours) delivered by the alternative

18 retail electric supplier to Illinois retail

19 customers during the delivery year ending May 31,

20 2016.

21 For delivery years beginning June 1, 2019 and

22 each year thereafter, the maximum amount of

23 renewable energy credits to be supplied by an

24 alternative retail electric supplier under this

25 subparagraph (H) shall be 68% multiplied by 50%

26 multiplied by 16% multiplied by the amount of

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1 metered electricity (megawatt-hours) delivered by

2 the alternative retail electric supplier to

3 Illinois retail customers during the delivery year

4 ending May 31, 2016, provided that the 16% value

5 shall increase by 1.5% each delivery year

6 thereafter to 25% by the delivery year beginning

7 June 1, 2025, and thereafter the 25% value shall

8 apply to each delivery year.

9 For each delivery year, the total amount of

10 renewable energy credits supplied by all alternative

11 retail electric suppliers under this subparagraph (H)

12 shall not exceed 9% of the Illinois target renewable

13 energy credit quantity. The Illinois target renewable

14 energy credit quantity for the delivery year beginning

15 June 1, 2018 is 14.5% multiplied by the total amount of

16 metered electricity (megawatt-hours) delivered in the

17 delivery year immediately preceding that delivery

18 year, provided that the 14.5% shall increase by 1.5%

19 each delivery year thereafter to 25% by the delivery

20 year beginning June 1, 2025, and thereafter the 25%

21 value shall apply to each delivery year.

22 If the requirements set forth in items (i) through

23 (iii) of this subparagraph (H) are met, the charges

24 that would otherwise be applicable to the retail

25 customers of the alternative retail electric supplier

26 under paragraph (6) of this subsection (c) for the

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1 applicable delivery year shall be reduced by the ratio

2 of the quantity of renewable energy credits supplied

3 by the alternative retail electric supplier compared

4 to that supplier's target renewable energy credit

5 quantity. The supplier's target renewable energy

6 credit quantity for the delivery year beginning June

7 1, 2018 is 14.5% multiplied by the total amount of

8 metered electricity (megawatt-hours) delivered by the

9 alternative retail supplier in that delivery year,

10 provided that the 14.5% shall increase by 1.5% each

11 delivery year thereafter to 25% by the delivery year

12 beginning June 1, 2025, and thereafter the 25% value

13 shall apply to each delivery year.

14 On or before April 1 of each year, the Agency shall

15 annually publish a report on its website that

16 identifies the aggregate amount of renewable energy

17 credits supplied by alternative retail electric

18 suppliers under this subparagraph (H).

19 (I) The Agency shall design its long-term renewable

20 energy procurement plan to maximize the State's interest

21 in the health, safety, and welfare of its residents,

22 including but not limited to minimizing sulfur dioxide,

23 nitrogen oxide, particulate matter and other pollution

24 that adversely affects public health in this State,

25 increasing fuel and resource diversity in this State,

26 enhancing the reliability and resiliency of the

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1 electricity distribution system in this State, meeting

2 goals to limit carbon dioxide emissions under federal or

3 State law, and contributing to a cleaner and healthier

4 environment for the citizens of this State. In order to

5 further these legislative purposes, renewable energy

6 credits shall be eligible to be counted toward the

7 renewable energy requirements of this subsection (c) if

8 they are generated from facilities located in this State.

9 The Agency may qualify renewable energy credits from

10 facilities located in states adjacent to Illinois or

11 renewable energy credits associated with the electricity

12 generated by a utility-scale wind energy facility or

13 utility-scale photovoltaic facility and transmitted by a

14 qualifying direct current project described in subsection

15 (b-5) of Section 8-406 of the Public Utilities Act to a

16 delivery point on the electric transmission grid located

17 in this State or a state adjacent to Illinois, if the

18 generator demonstrates and the Agency determines that the

19 operation of such facility or facilities will help promote

20 the State's interest in the health, safety, and welfare of

21 its residents based on the public interest criteria

22 described above. For the purposes of this Section,

23 renewable resources that are delivered via a high voltage

24 direct current converter station located in Illinois shall

25 be deemed generated in Illinois at the time and location

26 the energy is converted to alternating current by the high

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1 voltage direct current converter station if the high

2 voltage direct current transmission line: (i) after the

3 effective date of this amendatory Act of the 102nd General

4 Assembly, was constructed with a project labor agreement;

5 (ii) is capable of transmitting electricity at 525kv;

6 (iii) has an Illinois converter station located and

7 interconnected in the region of the PJM Interconnection,

8 LLC; (iv) does not operate as a public utility; and (v) if

9 the high voltage direct current transmission line was

10 energized after June 1, 2023. To ensure that the public

11 interest criteria are applied to the procurement and given

12 full effect, the Agency's long-term procurement plan shall

13 describe in detail how each public interest factor shall

14 be considered and weighted for facilities located in

15 states adjacent to Illinois.

16 (J) In order to promote the competitive development of

17 renewable energy resources in furtherance of the State's

18 interest in the health, safety, and welfare of its

19 residents, renewable energy credits shall not be eligible

20 to be counted toward the renewable energy requirements of

21 this subsection (c) if they are sourced from a generating

22 unit whose costs were being recovered through rates

23 regulated by this State or any other state or states on or

24 after January 1, 2017. Each contract executed to purchase

25 renewable energy credits under this subsection (c) shall

26 provide for the contract's termination if the costs of the

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1 generating unit supplying the renewable energy credits

2 subsequently begin to be recovered through rates regulated

3 by this State or any other state or states; and each

4 contract shall further provide that, in that event, the

5 supplier of the credits must return 110% of all payments

6 received under the contract. Amounts returned under the

7 requirements of this subparagraph (J) shall be retained by

8 the utility and all of these amounts shall be used for the

9 procurement of additional renewable energy credits from

10 new wind or new photovoltaic resources as defined in this

11 subsection (c). The long-term plan shall provide that

12 these renewable energy credits shall be procured in the

13 next procurement event.

14 Notwithstanding the limitations of this subparagraph

15 (J), renewable energy credits sourced from generating

16 units that are constructed, purchased, owned, or leased by

17 an electric utility as part of an approved project,

18 program, or pilot under Section 1-56 of this Act shall be

19 eligible to be counted toward the renewable energy

20 requirements of this subsection (c), regardless of how the

21 costs of these units are recovered. As long as a

22 generating unit or an identifiable portion of a generating

23 unit has not had and does not have its costs recovered

24 through rates regulated by this State or any other state,

25 HVDC renewable energy credits associated with that

26 generating unit or identifiable portion thereof shall be

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1 eligible to be counted toward the renewable energy

2 requirements of this subsection (c).

3 (K) The long-term renewable resources procurement plan

4 developed by the Agency in accordance with subparagraph

5 (A) of this paragraph (1) shall include an Adjustable

6 Block program for the procurement of renewable energy

7 credits from new photovoltaic projects that are

8 distributed renewable energy generation devices or new

9 photovoltaic community renewable generation projects. The

10 Adjustable Block program shall be generally designed to

11 provide for the steady, predictable, and sustainable

12 growth of new solar photovoltaic development in Illinois.

13 To this end, the Adjustable Block program shall provide a

14 transparent annual schedule of prices and quantities to

15 enable the photovoltaic market to scale up and for

16 renewable energy credit prices to adjust at a predictable

17 rate over time. The prices set by the Adjustable Block

18 program can be reflected as a set value or as the product

19 of a formula.

20 The Adjustable Block program shall include for each

21 category of eligible projects for each delivery year: a

22 single block of nameplate capacity, a price for renewable

23 energy credits within that block, and the terms and

24 conditions for securing a spot on a waitlist once the

25 block is fully committed or reserved. Except as outlined

26 below, the waitlist of projects in a given year will carry

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1 over to apply to the subsequent year when another block is

2 opened. Only projects energized on or after June 1, 2017

3 shall be eligible for the Adjustable Block program. For

4 each category for each delivery year the Agency shall

5 determine the amount of generation capacity in each block,

6 and the purchase price for each block, provided that the

7 purchase price provided and the total amount of generation

8 in all blocks for all categories shall be sufficient to

9 meet the goals in this subsection (c). The Agency shall

10 strive to issue a single block sized to provide for

11 stability and market growth. The Agency shall establish

12 program eligibility requirements that ensure that projects

13 that enter the program are sufficiently mature to indicate

14 a demonstrable path to completion. The Agency may

15 periodically review its prior decisions establishing the

16 amount of generation capacity in each block, and the

17 purchase price for each block, and may propose, on an

18 expedited basis, changes to these previously set values,

19 including but not limited to redistributing these amounts

20 and the available funds as necessary and appropriate,

21 subject to Commission approval as part of the periodic

22 plan revision process described in Section 16-111.5 of the

23 Public Utilities Act. The Agency may define different

24 block sizes, purchase prices, or other distinct terms and

25 conditions for projects located in different utility

26 service territories if the Agency deems it necessary to

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1 meet the goals in this subsection (c).

2 The Adjustable Block program shall include the

3 following categories in at least the following amounts:

4 (i) At least 20% from distributed renewable energy

5 generation devices with a nameplate capacity of no

6 more than 25 kilowatts.

7 (ii) At least 20% from distributed renewable

8 energy generation devices with a nameplate capacity of

9 more than 25 kilowatts and no more than 5,000

10 kilowatts. The Agency may create sub-categories within

11 this category to account for the differences between

12 projects for small commercial customers, large

13 commercial customers, and public or non-profit

14 customers.

15 (iii) At least 30% from photovoltaic community

16 renewable generation projects. Capacity for this

17 category for the first 2 delivery years after the

18 effective date of this amendatory Act of the 102nd

19 General Assembly shall be allocated to waitlist

20 projects as provided in paragraph (3) of item (iv) of

21 subparagraph (G). Starting in the third delivery year

22 after the effective date of this amendatory Act of the

23 102nd General Assembly or earlier if the Agency

24 determines there is additional capacity needed for to

25 meet previous delivery year requirements, the

26 following shall apply:

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1 (1) the Agency shall select projects on a

2 first-come, first-serve basis, however the Agency

3 may suggest additional methods to prioritize

4 projects that are submitted at the same time;

5 (2) projects shall have subscriptions of 25 kW

6 or less for at least 50% of the facility's

7 nameplate capacity and the Agency shall price the

8 renewable energy credits with that as a factor;

9 (3) projects shall not be colocated with one

10 or more other community renewable generation

11 projects, as defined in the Agency's first revised

12 long-term renewable resources procurement plan

13 approved by the Commission on February 18, 2020,

14 such that the aggregate nameplate capacity exceeds

15 5,000 kilowatts; and

16 (4) projects greater than 2 MW may not apply

17 until after the approval of the Agency's revised

18 Long-Term Renewable Resources Procurement Plan

19 after the effective date of this amendatory Act of

20 the 102nd General Assembly.

21 (iv) At least 15% from distributed renewable

22 generation devices or photovoltaic community renewable

23 generation projects installed on ~~at~~ public school land

24 ~~schools~~. The Agency may create subcategories within

25 this category to account for the differences between

26 project size or location. Projects located within

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1 environmental justice communities or within

2 Organizational Units that fall within Tier 1 or Tier 2

3 shall be given priority. Each of the Agency's periodic

4 updates to its long-term renewable resources

5 procurement plan to incorporate the procurement

6 described in this subparagraph (iv) shall also include

7 the proposed quantities or blocks, pricing, and

8 contract terms applicable to the procurement as

9 indicated herein. In each such update and procurement,

10 the Agency shall set the renewable energy credit price

11 and establish payment terms for the renewable energy

12 credits procured pursuant to this subparagraph (iv)

13 that make it feasible and affordable for public

14 schools to install photovoltaic distributed renewable

15 energy devices on their premises, including, but not

16 limited to, those public schools subject to the

17 prioritization provisions of this subparagraph. For

18 the purposes of this item (iv):

19 "Environmental Justice Community" shall have the

20 same meaning set forth in the Agency's long-term

21 renewable resources procurement plan;

22 "Organization Unit", "Tier 1" and "Tier 2" shall

23 have the meanings set for in Section 18-8.15 of the

24 School Code;

25 "Public schools" shall have the meaning set forth

26 in Section 1-3 of the School Code and includes public

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1 institutions of higher education, as defined in the

2 Board of Higher Education Act.

3 (v) At least 5% from community-driven community

4 solar projects intended to provide more direct and

5 tangible connection and benefits to the communities

6 which they serve or in which they operate and,

7 additionally, to increase the variety of community

8 solar locations, models, and options in Illinois. As

9 part of its long-term renewable resources procurement

10 plan, the Agency shall develop selection criteria for

11 projects participating in this category. Nothing in

12 this Section shall preclude the Agency from creating a

13 selection process that maximizes community ownership

14 and community benefits in selecting projects to

15 receive renewable energy credits. Selection criteria

16 shall include:

17 (1) community ownership or community

18 wealth-building;

19 (2) additional direct and indirect community

20 benefit, beyond project participation as a

21 subscriber, including, but not limited to,

22 economic, environmental, social, cultural, and

23 physical benefits;

24 (3) meaningful involvement in project

25 organization and development by community members

26 or nonprofit organizations or public entities

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1 located in or serving the community;

2 (4) engagement in project operations and

3 management by nonprofit organizations, public

4 entities, or community members; and

5 (5) whether a project is developed in response

6 to a site-specific RFP developed by community

7 members or a nonprofit organization or public

8 entity located in or serving the community.

9 Selection criteria may also prioritize projects

10 that:

11 (1) are developed in collaboration with or to

12 provide complementary opportunities for the Clean

13 Jobs Workforce Network Program, the Illinois

14 Climate Works Preapprenticeship Program, the

15 Returning Residents Clean Jobs Training Program,

16 the Clean Energy Contractor Incubator Program, or

17 the Clean Energy Primes Contractor Accelerator

18 Program;

19 (2) increase the diversity of locations of

20 community solar projects in Illinois, including by

21 locating in urban areas and population centers;

22 (3) are located in Equity Investment Eligible

23 Communities;

24 (4) are not greenfield projects;

25 (5) serve only local subscribers;

26 (6) have a nameplate capacity that does not

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1 exceed 500 kW;

2 (7) are developed by an equity eligible

3 contractor; or

4 (8) otherwise meaningfully advance the goals

5 of providing more direct and tangible connection

6 and benefits to the communities which they serve

7 or in which they operate and increasing the

8 variety of community solar locations, models, and

9 options in Illinois.

10 For the purposes of this item (v):

11 "Community" means a social unit in which people

12 come together regularly to effect change; a social

13 unit in which participants are marked by a cooperative

14 spirit, a common purpose, or shared interests or

15 characteristics; or a space understood by its

16 residents to be delineated through geographic

17 boundaries or landmarks.

18 "Community benefit" means a range of services and

19 activities that provide affirmative, economic,

20 environmental, social, cultural, or physical value to

21 a community; or a mechanism that enables economic

22 development, high-quality employment, and education

23 opportunities for local workers and residents, or

24 formal monitoring and oversight structures such that

25 community members may ensure that those services and

26 activities respond to local knowledge and needs.

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1 "Community ownership" means an arrangement in

2 which an electric generating facility is, or over time

3 will be, in significant part, owned collectively by

4 members of the community to which an electric

5 generating facility provides benefits; members of that

6 community participate in decisions regarding the

7 governance, operation, maintenance, and upgrades of

8 and to that facility; and members of that community

9 benefit from regular use of that facility.

10 Terms and guidance within these criteria that are

11 not defined in this item (v) shall be defined by the

12 Agency, with stakeholder input, during the development

13 of the Agency's long-term renewable resources

14 procurement plan. The Agency shall develop regular

15 opportunities for projects to submit applications for

16 projects under this category, and develop selection

17 criteria that gives preference to projects that better

18 meet individual criteria as well as projects that

19 address a higher number of criteria.

20 (vi) At least 10% from distributed renewable

21 energy generation devices, which includes distributed

22 renewable energy devices with a nameplate capacity

23 under 5,000 kilowatts or photovoltaic community

24 renewable generation projects, from applicants that

25 are equity eligible contractors. The Agency may create

26 subcategories within this category to account for the

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1 differences between project size and type. The Agency

2 shall propose to increase the percentage in this item

3 (vi) over time to 40% based on factors, including, but

4 not limited to, the number of equity eligible

5 contractors and capacity used in this item (vi) in

6 previous delivery years.

7 The Agency shall propose a payment structure for

8 contracts executed pursuant to this paragraph under

9 which, upon a demonstration of qualification or need,

10 applicant firms are advanced capital disbursed after

11 contract execution but before the contracted project's

12 energization. The amount or percentage of capital

13 advanced prior to project energization shall be

14 sufficient to both cover any increase in development

15 costs resulting from prevailing wage requirements or

16 project-labor agreements, and designed to overcome

17 barriers in access to capital faced by equity eligible

18 contractors. The amount or percentage of advanced

19 capital may vary by subcategory within this category

20 and by an applicant's demonstration of need, with such

21 levels to be established through the Long-Term

22 Renewable Resources Procurement Plan authorized under

23 subparagraph (A) of paragraph (1) of subsection (c) of

24 this Section.

25 Contracts developed featuring capital advanced

26 prior to a project's energization shall feature

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1 provisions to ensure both the successful development

2 of applicant projects and the delivery of the

3 renewable energy credits for the full term of the

4 contract, including ongoing collateral requirements

5 and other provisions deemed necessary by the Agency,

6 and may include energization timelines longer than for

7 comparable project types. The percentage or amount of

8 capital advanced prior to project energization shall

9 not operate to increase the overall contract value,

10 however contracts executed under this subparagraph may

11 feature renewable energy credit prices higher than

12 those offered to similar projects participating in

13 other categories. Capital advanced prior to

14 energization shall serve to reduce the ratable

15 payments made after energization under items (ii) and

16 (iii) of subparagraph (L) or payments made for each

17 renewable energy credit delivery under item (iv) of

18 subparagraph (L).

19 (vii) The remaining capacity shall be allocated by

20 the Agency in order to respond to market demand. The

21 Agency shall allocate any discretionary capacity prior

22 to the beginning of each delivery year.

23 To the extent there is uncontracted capacity from any

24 block in any of categories (i) through (vi) at the end of a

25 delivery year, the Agency shall redistribute that capacity

26 to one or more other categories giving priority to

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1 categories with projects on a waitlist. The redistributed

2 capacity shall be added to the annual capacity in the

3 subsequent delivery year, and the price for renewable

4 energy credits shall be the price for the new delivery

5 year. Redistributed capacity shall not be considered

6 redistributed when determining whether the goals in this

7 subsection (K) have been met.

8 Notwithstanding anything to the contrary, as the

9 Agency increases the capacity in item (vi) to 40% over

10 time, the Agency may reduce the capacity of items (i)

11 through (v) proportionate to the capacity of the

12 categories of projects in item (vi), to achieve a balance

13 of project types.

14 The Adjustable Block program shall be designed to

15 ensure that renewable energy credits are procured from

16 projects in diverse locations and are not concentrated in

17 a few regional areas.

18 (L) Notwithstanding provisions for advancing capital

19 prior to project energization found in item (vi) of

20 subparagraph (K), the procurement of photovoltaic

21 renewable energy credits under items (i) through (vi) of

22 subparagraph (K) of this paragraph (1) shall otherwise be

23 subject to the following contract and payment terms:

24 (i) (Blank).

25 (ii) For those renewable energy credits that

26 qualify and are procured under item (i) of

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1 subparagraph (K) of this paragraph (1), and any

2 similar category projects that are procured under item

3 (vi) of subparagraph (K) of this paragraph (1) that

4 qualify and are procured under item (vi), the contract

5 length shall be 15 years. The renewable energy credit

6 delivery contract value shall be paid in full, based

7 on the estimated generation during the first 15 years

8 of operation, by the contracting utilities at the time

9 that the facility producing the renewable energy

10 credits is interconnected at the distribution system

11 level of the utility and verified as energized and

12 compliant by the Program Administrator. The electric

13 utility shall receive and retire all renewable energy

14 credits generated by the project for the first 15

15 years of operation. Renewable energy credits generated

16 by the project thereafter shall not be transferred

17 under the renewable energy credit delivery contract

18 with the counterparty electric utility.

19 (iii) For those renewable energy credits that

20 qualify and are procured under item (ii) and (v) of

21 subparagraph (K) of this paragraph (1) and any like

22 projects similar category that qualify and are

23 procured under item (vi), the contract length shall be

24 15 years. 15% of the renewable energy credit delivery

25 contract value, based on the estimated generation

26 during the first 15 years of operation, shall be paid

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1 by the contracting utilities at the time that the

2 facility producing the renewable energy credits is

3 interconnected at the distribution system level of the

4 utility and verified as energized and compliant by the

5 Program Administrator. The remaining portion shall be

6 paid ratably over the subsequent 6-year period. The

7 electric utility shall receive and retire all

8 renewable energy credits generated by the project for

9 the first 15 years of operation. Renewable energy

10 credits generated by the project thereafter shall not

11 be transferred under the renewable energy credit

12 delivery contract with the counterparty electric

13 utility.

14 (iv) For those renewable energy credits that

15 qualify and are procured under items (iii) and (iv) of

16 subparagraph (K) of this paragraph (1), and any like

17 projects that qualify and are procured under item

18 (vi), the renewable energy credit delivery contract

19 length shall be 20 years and shall be paid over the

20 delivery term, not to exceed during each delivery year

21 the contract price multiplied by the estimated annual

22 renewable energy credit generation amount. If

23 generation of renewable energy credits during a

24 delivery year exceeds the estimated annual generation

25 amount, the excess renewable energy credits shall be

26 carried forward to future delivery years and shall not

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1 expire during the delivery term. If generation of

2 renewable energy credits during a delivery year,

3 including carried forward excess renewable energy

4 credits, if any, is less than the estimated annual

5 generation amount, payments during such delivery year

6 will not exceed the quantity generated plus the

7 quantity carried forward multiplied by the contract

8 price. The electric utility shall receive all

9 renewable energy credits generated by the project

10 during the first 20 years of operation and retire all

11 renewable energy credits paid for under this item (iv)

12 and return at the end of the delivery term all

13 renewable energy credits that were not paid for.

14 Renewable energy credits generated by the project

15 thereafter shall not be transferred under the

16 renewable energy credit delivery contract with the

17 counterparty electric utility. Notwithstanding the

18 preceding, for those projects participating under item

19 (iii) of subparagraph (K), the contract price for a

20 delivery year shall be based on subscription levels as

21 measured on the higher of the first business day of the

22 delivery year or the first business day 6 months after

23 the first business day of the delivery year.

24 Subscription of 90% of nameplate capacity or greater

25 shall be deemed to be fully subscribed for the

26 purposes of this item (iv). For projects receiving a

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1 20-year delivery contract, REC prices shall be

2 adjusted downward for consistency with the incentive

3 levels previously determined to be necessary to

4 support projects under 15-year delivery contracts,

5 taking into consideration any additional new

6 requirements placed on the projects, including, but

7 not limited to, labor standards.

8 (v) Each contract shall include provisions to

9 ensure the delivery of the estimated quantity of

10 renewable energy credits and ongoing collateral

11 requirements and other provisions deemed appropriate

12 by the Agency.

13 (vi) The utility shall be the counterparty to the

14 contracts executed under this subparagraph (L) that

15 are approved by the Commission under the process

16 described in Section 16-111.5 of the Public Utilities

17 Act. No contract shall be executed for an amount that

18 is less than one renewable energy credit per year.

19 (vii) If, at any time, approved applications for

20 the Adjustable Block program exceed funds collected by

21 the electric utility or would cause the Agency to

22 exceed the limitation described in subparagraph (E) of

23 this paragraph (1) on the amount of renewable energy

24 resources that may be procured, then the Agency may

25 consider future uncommitted funds to be reserved for

26 these contracts on a first-come, first-served basis.

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1 (viii) Nothing in this Section shall require the

2 utility to advance any payment or pay any amounts that

3 exceed the actual amount of revenues anticipated to be

4 collected by the utility under paragraph (6) of this

5 subsection (c) and subsection (k) of Section 16-108 of

6 the Public Utilities Act inclusive of eligible funds

7 collected in prior years and alternative compliance

8 payments for use by the utility, and contracts

9 executed under this Section shall expressly

10 incorporate this limitation.

11 (ix) Notwithstanding other requirements of this

12 subparagraph (L), no modification shall be required to

13 Adjustable Block program contracts if they were

14 already executed prior to the establishment, approval,

15 and implementation of new contract forms as a result

16 of this amendatory Act of the 102nd General Assembly.

17 (x) Contracts may be assignable, but only to

18 entities first deemed by the Agency to have met

19 program terms and requirements applicable to direct

20 program participation. In developing contracts for the

21 delivery of renewable energy credits, the Agency shall

22 be permitted to establish fees applicable to each

23 contract assignment.

24 (M) The Agency shall be authorized to retain one or

25 more experts or expert consulting firms to develop,

26 administer, implement, operate, and evaluate the

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1 Adjustable Block program described in subparagraph (K) of

2 this paragraph (1), and the Agency shall retain the

3 consultant or consultants in the same manner, to the

4 extent practicable, as the Agency retains others to

5 administer provisions of this Act, including, but not

6 limited to, the procurement administrator. The selection

7 of experts and expert consulting firms and the procurement

8 process described in this subparagraph (M) are exempt from

9 the requirements of Section 20-10 of the Illinois

10 Procurement Code, under Section 20-10 of that Code. The

11 Agency shall strive to minimize administrative expenses in

12 the implementation of the Adjustable Block program.

13 The Program Administrator may charge application fees

14 to participating firms to cover the cost of program

15 administration. Any application fee amounts shall

16 initially be determined through the long-term renewable

17 resources procurement plan, and modifications to any

18 application fee that deviate more than 25% from the

19 Commission's approved value must be approved by the

20 Commission as a long-term plan revision under Section

21 16-111.5 of the Public Utilities Act. The Agency shall

22 consider stakeholder feedback when making adjustments to

23 application fees and shall notify stakeholders in advance

24 of any planned changes.

25 In addition to covering the costs of program

26 administration, the Agency, in conjunction with its

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1 Program Administrator, may also use the proceeds of such

2 fees charged to participating firms to support public

3 education and ongoing regional and national coordination

4 with nonprofit organizations, public bodies, and others

5 engaged in the implementation of renewable energy

6 incentive programs or similar initiatives. This work may

7 include developing papers and reports, hosting regional

8 and national conferences, and other work deemed necessary

9 by the Agency to position the State of Illinois as a

10 national leader in renewable energy incentive program

11 development and administration.

12 The Agency and its consultant or consultants shall

13 monitor block activity, share program activity with

14 stakeholders and conduct quarterly meetings to discuss

15 program activity and market conditions. If necessary, the

16 Agency may make prospective administrative adjustments to

17 the Adjustable Block program design, such as making

18 adjustments to purchase prices as necessary to achieve the

19 goals of this subsection (c). Program modifications to any

20 block price that do not deviate from the Commission's

21 approved value by more than 10% shall take effect

22 immediately and are not subject to Commission review and

23 approval. Program modifications to any block price that

24 deviate more than 10% from the Commission's approved value

25 must be approved by the Commission as a long-term plan

26 amendment under Section 16-111.5 of the Public Utilities

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1 Act. The Agency shall consider stakeholder feedback when

2 making adjustments to the Adjustable Block design and

3 shall notify stakeholders in advance of any planned

4 changes.

5 The Agency and its program administrators for both the

6 Adjustable Block program and the Illinois Solar for All

7 Program, consistent with the requirements of this

8 subsection (c) and subsection (b) of Section 1-56 of this

9 Act, shall propose the Adjustable Block program terms,

10 conditions, and requirements, including the prices to be

11 paid for renewable energy credits, where applicable, and

12 requirements applicable to participating entities and

13 project applications, through the development, review, and

14 approval of the Agency's long-term renewable resources

15 procurement plan described in this subsection (c) and

16 paragraph (5) of subsection (b) of Section 16-111.5 of the

17 Public Utilities Act. Terms, conditions, and requirements

18 for program participation shall include the following:

19 (i) The Agency shall establish a registration

20 process for entities seeking to qualify for

21 program-administered incentive funding and establish

22 baseline qualifications for vendor approval. The

23 Agency must maintain a list of approved entities on

24 each program's website, and may revoke a vendor's

25 ability to receive program-administered incentive

26 funding status upon a determination that the vendor

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1 failed to comply with contract terms, the law, or

2 other program requirements.

3 (ii) The Agency shall establish program

4 requirements and minimum contract terms to ensure

5 projects are properly installed and produce their

6 expected amounts of energy. Program requirements may

7 include on-site inspections and photo documentation of

8 projects under construction. The Agency may require

9 repairs, alterations, or additions to remedy any

10 material deficiencies discovered. Vendors who have a

11 disproportionately high number of deficient systems

12 may lose their eligibility to continue to receive

13 State-administered incentive funding through Agency

14 programs and procurements.

15 (iii) To discourage deceptive marketing or other

16 bad faith business practices, the Agency may require

17 direct program participants, including agents

18 operating on their behalf, to provide standardized

19 disclosures to a customer prior to that customer's

20 execution of a contract for the development of a

21 distributed generation system or a subscription to a

22 community solar project.

23 (iv) The Agency shall establish one or multiple

24 Consumer Complaints Centers to accept complaints

25 regarding businesses that participate in, or otherwise

26 benefit from, State-administered incentive funding

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1 through Agency-administered programs. The Agency shall

2 maintain a public database of complaints with any

3 confidential or particularly sensitive information

4 redacted from public entries.

5 (v) Through a filing in the proceeding for the

6 approval of its long-term renewable energy resources

7 procurement plan, the Agency shall provide an annual

8 written report to the Illinois Commerce Commission

9 documenting the frequency and nature of complaints and

10 any enforcement actions taken in response to those

11 complaints.

12 (vi) The Agency shall schedule regular meetings

13 with representatives of the Office of the Attorney

14 General, the Illinois Commerce Commission, consumer

15 protection groups, and other interested stakeholders

16 to share relevant information about consumer

17 protection, project compliance, and complaints

18 received.

19 (vii) To the extent that complaints received

20 implicate the jurisdiction of the Office of the

21 Attorney General, the Illinois Commerce Commission, or

22 local, State, or federal law enforcement, the Agency

23 shall also refer complaints to those entities as

24 appropriate.

25 (N) The Agency shall establish the terms, conditions,

26 and program requirements for photovoltaic community

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1 renewable generation projects with a goal to expand access

2 to a broader group of energy consumers, to ensure robust

3 participation opportunities for residential and small

4 commercial customers and those who cannot install

5 renewable energy on their own properties. Subject to

6 reasonable limitations, any plan approved by the

7 Commission shall allow subscriptions to community

8 renewable generation projects to be portable and

9 transferable. For purposes of this subparagraph (N),

10 "portable" means that subscriptions may be retained by the

11 subscriber even if the subscriber relocates or changes its

12 address within the same utility service territory; and

13 "transferable" means that a subscriber may assign or sell

14 subscriptions to another person within the same utility

15 service territory.

16 Through the development of its long-term renewable

17 resources procurement plan, the Agency may consider

18 whether community renewable generation projects utilizing

19 technologies other than photovoltaics should be supported

20 through State-administered incentive funding, and may

21 issue requests for information to gauge market demand.

22 Electric utilities shall provide a monetary credit to

23 a subscriber's subsequent bill for service for the

24 proportional output of a community renewable generation

25 project attributable to that subscriber as specified in

26 Section 16-107.5 of the Public Utilities Act.

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1 The Agency shall purchase renewable energy credits

2 from subscribed shares of photovoltaic community renewable

3 generation projects through the Adjustable Block program

4 described in subparagraph (K) of this paragraph (1) or

5 through the Illinois Solar for All Program described in

6 Section 1-56 of this Act. The electric utility shall

7 purchase any unsubscribed energy from community renewable

8 generation projects that are Qualifying Facilities ("QF")

9 under the electric utility's tariff for purchasing the

10 output from QFs under Public Utilities Regulatory Policies

11 Act of 1978.

12 The owners of and any subscribers to a community

13 renewable generation project shall not be considered

14 public utilities or alternative retail electricity

15 suppliers under the Public Utilities Act solely as a

16 result of their interest in or subscription to a community

17 renewable generation project and shall not be required to

18 become an alternative retail electric supplier by

19 participating in a community renewable generation project

20 with a public utility.

21 (O) For the delivery year beginning June 1, 2018, the

22 long-term renewable resources procurement plan required by

23 this subsection (c) shall provide for the Agency to

24 procure contracts to continue offering the Illinois Solar

25 for All Program described in subsection (b) of Section

26 1-56 of this Act, and the contracts approved by the

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1 Commission shall be executed by the utilities that are

2 subject to this subsection (c). The long-term renewable

3 resources procurement plan shall allocate up to

4 $50,000,000 per delivery year to fund the programs, and

5 the plan shall determine the amount of funding to be

6 apportioned to the programs identified in subsection (b)

7 of Section 1-56 of this Act; provided that for the

8 delivery years beginning June 1, 2021, June 1, 2022, and

9 June 1, 2023, the long-term renewable resources

10 procurement plan may average the annual budgets over a

11 3-year period to account for program ramp-up. For the

12 delivery years beginning June 1, 2021, June 1, 2024, June

13 1, 2027, and June 1, 2030 and additional $10,000,000 shall

14 be provided to the Department of Commerce and Economic

15 Opportunity to implement the workforce development

16 programs and reporting as outlined in Section 16-108.12 of

17 the Public Utilities Act. In making the determinations

18 required under this subparagraph (O), the Commission shall

19 consider the experience and performance under the programs

20 and any evaluation reports. The Commission shall also

21 provide for an independent evaluation of those programs on

22 a periodic basis that are funded under this subparagraph

23 (O).

24 (P) All programs and procurements under this

25 subsection (c) shall be designed to encourage

26 participating projects to use a diverse and equitable

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1 workforce and a diverse set of contractors, including

2 minority-owned businesses, disadvantaged businesses,

3 trade unions, graduates of any workforce training programs

4 administered under this Act, and small businesses.

5 The Agency shall develop a method to optimize

6 procurement of renewable energy credits from proposed

7 utility-scale projects that are located in communities

8 eligible to receive Energy Transition Community Grants

9 pursuant to Section 10-20 of the Energy Community

10 Reinvestment Act. If this requirement conflicts with other

11 provisions of law or the Agency determines that full

12 compliance with the requirements of this subparagraph (P)

13 would be unreasonably costly or administratively

14 impractical, the Agency is to propose alternative

15 approaches to achieve development of renewable energy

16 resources in communities eligible to receive Energy

17 Transition Community Grants pursuant to Section 10-20 of

18 the Energy Community Reinvestment Act or seek an exemption

19 from this requirement from the Commission.

20 (Q) Each facility listed in subitems (i) through (ix)

21 of item (1) of this subparagraph (Q) for which a renewable

22 energy credit delivery contract is signed after the

23 effective date of this amendatory Act of the 102nd General

24 Assembly is subject to the following requirements through

25 the Agency's long-term renewable resources procurement

26 plan:

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1 (1) Each facility shall be subject to the

2 prevailing wage requirements included in the

3 Prevailing Wage Act. The Agency shall require

4 verification that all construction performed on the

5 facility by the renewable energy credit delivery

6 contract holder, its contractors, or its

7 subcontractors relating to construction of the

8 facility is performed by construction employees

9 receiving an amount for that work equal to or greater

10 than the general prevailing rate, as that term is

11 defined in Section 3 of the Prevailing Wage Act. For

12 purposes of this item (1), "house of worship" means

13 property that is both (1) used exclusively by a

14 religious society or body of persons as a place for

15 religious exercise or religious worship and (2)

16 recognized as exempt from taxation pursuant to Section

17 15-40 of the Property Tax Code. This item (1) shall

18 apply to any the following:

19 (i) all new utility-scale wind projects;

20 (ii) all new utility-scale photovoltaic

21 projects;

22 (iii) all new brownfield photovoltaic

23 projects;

24 (iv) all new photovoltaic community renewable

25 energy facilities that qualify for item (iii) of

26 subparagraph (K) of this paragraph (1);

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1 (v) all new community driven community

2 photovoltaic projects that qualify for item (v) of

3 subparagraph (K) of this paragraph (1);

4 (vi) all new photovoltaic projects on public

5 school land ~~distributed renewable energy~~

6 ~~generation devices on schools~~ that qualify for

7 item (iv) of subparagraph (K) of this paragraph

8 (1);

9 (vii) all new photovoltaic distributed

10 renewable energy generation devices that (1)

11 qualify for item (i) of subparagraph (K) of this

12 paragraph (1); (2) are not projects that serve

13 single-family or multi-family residential

14 buildings; and (3) are not houses of worship where

15 the aggregate capacity including collocated

16 projects would not exceed 100 kilowatts;

17 (viii) all new photovoltaic distributed

18 renewable energy generation devices that (1)

19 qualify for item (ii) of subparagraph (K) of this

20 paragraph (1); (2) are not projects that serve

21 single-family or multi-family residential

22 buildings; and (3) are not houses of worship where

23 the aggregate capacity including collocated

24 projects would not exceed 100 kilowatts;

25 (ix) all new, modernized, or retooled

26 hydropower facilities.

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1 (2) Renewable energy credits procured from new

2 utility-scale wind projects, new utility-scale solar

3 projects, and new brownfield solar projects pursuant

4 to Agency procurement events occurring after the

5 effective date of this amendatory Act of the 102nd

6 General Assembly must be from facilities built by

7 general contractors that must enter into a project

8 labor agreement, as defined by this Act, prior to

9 construction. The project labor agreement shall be

10 filed with the Director in accordance with procedures

11 established by the Agency through its long-term

12 renewable resources procurement plan. Any information

13 submitted to the Agency in this item (2) shall be

14 considered commercially sensitive information. At a

15 minimum, the project labor agreement must provide the

16 names, addresses, and occupations of the owner of the

17 plant and the individuals representing the labor

18 organization employees participating in the project

19 labor agreement consistent with the Project Labor

20 Agreements Act. The agreement must also specify the

21 terms and conditions as defined by this Act.

22 (3) It is the intent of this Section to ensure that

23 economic development occurs across Illinois

24 communities, that emerging businesses may grow, and

25 that there is improved access to the clean energy

26 economy by persons who have greater economic burdens

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1 to success. The Agency shall take into consideration

2 the unique cost of compliance of this subparagraph (Q)

3 that might be borne by equity eligible contractors,

4 shall include such costs when determining the price of

5 renewable energy credits in the Adjustable Block

6 program, and shall take such costs into consideration

7 in a nondiscriminatory manner when comparing bids for

8 competitive procurements. The Agency shall consider

9 costs associated with compliance whether in the

10 development, financing, or construction of projects.

11 The Agency shall periodically review the assumptions

12 in these costs and may adjust prices, in compliance

13 with subparagraph (M) of this paragraph (1).

14 (R) In its long-term renewable resources procurement

15 plan, the Agency shall establish a self-direct renewable

16 portfolio standard compliance program for eligible

17 self-direct customers that purchase renewable energy

18 credits from utility-scale wind and solar projects through

19 long-term agreements for purchase of renewable energy

20 credits as described in this Section. Such long-term

21 agreements may include the purchase of energy or other

22 products on a physical or financial basis and may involve

23 an alternative retail electric supplier as defined in

24 Section 16-102 of the Public Utilities Act. This program

25 shall take effect in the delivery year commencing June 1,

26 2023.

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1 (1) For the purposes of this subparagraph:

2 "Eligible self-direct customer" means any retail

3 customers of an electric utility that serves 3,000,000

4 or more retail customers in the State and whose total

5 highest 30-minute demand was more than 10,000

6 kilowatts, or any retail customers of an electric

7 utility that serves less than 3,000,000 retail

8 customers but more than 500,000 retail customers in

9 the State and whose total highest 15-minute demand was

10 more than 10,000 kilowatts.

11 "Retail customer" has the meaning set forth in

12 Section 16-102 of the Public Utilities Act and

13 multiple retail customer accounts under the same

14 corporate parent may aggregate their account demands

15 to meet the 10,000 kilowatt threshold. The criteria

16 for determining whether this subparagraph is

17 applicable to a retail customer shall be based on the

18 12 consecutive billing periods prior to the start of

19 the year in which the application is filed.

20 (2) For renewable energy credits to count toward

21 the self-direct renewable portfolio standard

22 compliance program, they must:

23 (i) qualify as renewable energy credits as

24 defined in Section 1-10 of this Act;

25 (ii) be sourced from one or more renewable

26 energy generating facilities that comply with the

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1 geographic requirements as set forth in

2 subparagraph (I) of paragraph (1) of subsection

3 (c) as interpreted through the Agency's long-term

4 renewable resources procurement plan, or, where

5 applicable, the geographic requirements that

6 governed utility-scale renewable energy credits at

7 the time the eligible self-direct customer entered

8 into the applicable renewable energy credit

9 purchase agreement;

10 (iii) be procured through long-term contracts

11 with term lengths of at least 10 years either

12 directly with the renewable energy generating

13 facility or through a bundled power purchase

14 agreement, a virtual power purchase agreement, an

15 agreement between the renewable generating

16 facility, an alternative retail electric supplier,

17 and the customer, or such other structure as is

18 permissible under this subparagraph (R);

19 (iv) be equivalent in volume to at least 40%

20 of the eligible self-direct customer's usage,

21 determined annually by the eligible self-direct

22 customer's usage during the previous delivery

23 year, measured to the nearest megawatt-hour;

24 (v) be retired by or on behalf of the large

25 energy customer;

26 (vi) be sourced from new utility-scale wind

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1 projects or new utility-scale solar projects; and

2 (vii) if the contracts for renewable energy

3 credits are entered into after the effective date

4 of this amendatory Act of the 102nd General

5 Assembly, the new utility-scale wind projects or

6 new utility-scale solar projects must comply with

7 the requirements established in subparagraphs (P)

8 and (Q) of paragraph (1) of this subsection (c)

9 and subsection (c-10).

10 (3) The self-direct renewable portfolio standard

11 compliance program shall be designed to allow eligible

12 self-direct customers to procure new renewable energy

13 credits from new utility-scale wind projects or new

14 utility-scale photovoltaic projects. The Agency shall

15 annually determine the amount of utility-scale

16 renewable energy credits it will include each year

17 from the self-direct renewable portfolio standard

18 compliance program, subject to receiving qualifying

19 applications. In making this determination, the Agency

20 shall evaluate publicly available analyses and studies

21 of the potential market size for utility-scale

22 renewable energy long-term purchase agreements by

23 commercial and industrial energy customers and make

24 that report publicly available. If demand for

25 participation in the self-direct renewable portfolio

26 standard compliance program exceeds availability, the

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1 Agency shall ensure participation is evenly split

2 between commercial and industrial users to the extent

3 there is sufficient demand from both customer classes.

4 Each renewable energy credit procured pursuant to this

5 subparagraph (R) by a self-direct customer shall

6 reduce the total volume of renewable energy credits

7 the Agency is otherwise required to procure from new

8 utility-scale projects pursuant to subparagraph (C) of

9 paragraph (1) of this subsection (c) on behalf of

10 contracting utilities where the eligible self-direct

11 customer is located. The self-direct customer shall

12 file an annual compliance report with the Agency

13 pursuant to terms established by the Agency through

14 its long-term renewable resources procurement plan to

15 be eligible for participation in this program.

16 Customers must provide the Agency with their most

17 recent electricity billing statements or other

18 information deemed necessary by the Agency to

19 demonstrate they are an eligible self-direct customer.

20 (4) The Commission shall approve a reduction in

21 the volumetric charges collected pursuant to Section

22 16-108 of the Public Utilities Act for approved

23 eligible self-direct customers equivalent to the

24 anticipated cost of renewable energy credit deliveries

25 under contracts for new utility-scale wind and new

26 utility-scale solar entered for each delivery year

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1 after the large energy customer begins retiring

2 eligible new utility scale renewable energy credits

3 for self-compliance. The self-direct credit amount

4 shall be determined annually and is equal to the

5 estimated portion of the cost authorized by

6 subparagraph (E) of paragraph (1) of this subsection

7 (c) that supported the annual procurement of

8 utility-scale renewable energy credits in the prior

9 delivery year using a methodology described in the

10 long-term renewable resources procurement plan,

11 expressed on a per kilowatthour basis, and does not

12 include (i) costs associated with any contracts

13 entered into before the delivery year in which the

14 customer files the initial compliance report to be

15 eligible for participation in the self-direct program,

16 and (ii) costs associated with procuring renewable

17 energy credits through existing and future contracts

18 through the Adjustable Block Program, subsection (c-5)

19 of this Section 1-75, and the Solar for All Program.

20 The Agency shall assist the Commission in determining

21 the current and future costs. The Agency must

22 determine the self-direct credit amount for new and

23 existing eligible self-direct customers and submit

24 this to the Commission in an annual compliance filing.

25 The Commission must approve the self-direct credit

26 amount by June 1, 2023 and June 1 of each delivery year

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1 thereafter.

2 (5) Customers described in this subparagraph (R)

3 shall apply, on a form developed by the Agency, to the

4 Agency to be designated as a self-direct eligible

5 customer. Once the Agency determines that a

6 self-direct customer is eligible for participation in

7 the program, the self-direct customer will remain

8 eligible until the end of the term of the contract.

9 Thereafter, application may be made not less than 12

10 months before the filing date of the long-term

11 renewable resources procurement plan described in this

12 Act. At a minimum, such application shall contain the

13 following:

14 (i) the customer's certification that, at the

15 time of the customer's application, the customer

16 qualifies to be a self-direct eligible customer,

17 including documents demonstrating that

18 qualification;

19 (ii) the customer's certification that the

20 customer has entered into or will enter into by

21 the beginning of the applicable procurement year,

22 one or more bilateral contracts for new wind

23 projects or new photovoltaic projects, including

24 supporting documentation;

25 (iii) certification that the contract or

26 contracts for new renewable energy resources are

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1 long-term contracts with term lengths of at least

2 10 years, including supporting documentation;

3 (iv) certification of the quantities of

4 renewable energy credits that the customer will

5 purchase each year under such contract or

6 contracts, including supporting documentation;

7 (v) proof that the contract is sufficient to

8 produce renewable energy credits to be equivalent

9 in volume to at least 40% of the large energy

10 customer's usage from the previous delivery year,

11 measured to the nearest megawatt-hour; and

12 (vi) certification that the customer intends

13 to maintain the contract for the duration of the

14 length of the contract.

15 (6) If a customer receives the self-direct credit

16 but fails to properly procure and retire renewable

17 energy credits as required under this subparagraph

18 (R), the Commission, on petition from the Agency and

19 after notice and hearing, may direct such customer's

20 utility to recover the cost of the wrongfully received

21 self-direct credits plus interest through an adder to

22 charges assessed pursuant to Section 16-108 of the

23 Public Utilities Act. Self-direct customers who

24 knowingly fail to properly procure and retire

25 renewable energy credits and do not notify the Agency

26 are ineligible for continued participation in the

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1 self-direct renewable portfolio standard compliance

2 program.

3 (2) (Blank).

4 (3) (Blank).

5 (4) The electric utility shall retire all renewable

6 energy credits used to comply with the standard.

7 (5) Beginning with the 2010 delivery year and ending

8 June 1, 2017, an electric utility subject to this

9 subsection (c) shall apply the lesser of the maximum

10 alternative compliance payment rate or the most recent

11 estimated alternative compliance payment rate for its

12 service territory for the corresponding compliance period,

13 established pursuant to subsection (d) of Section 16-115D

14 of the Public Utilities Act to its retail customers that

15 take service pursuant to the electric utility's hourly

16 pricing tariff or tariffs. The electric utility shall

17 retain all amounts collected as a result of the

18 application of the alternative compliance payment rate or

19 rates to such customers, and, beginning in 2011, the

20 utility shall include in the information provided under

21 item (1) of subsection (d) of Section 16-111.5 of the

22 Public Utilities Act the amounts collected under the

23 alternative compliance payment rate or rates for the prior

24 year ending May 31. Notwithstanding any limitation on the

25 procurement of renewable energy resources imposed by item

26 (2) of this subsection (c), the Agency shall increase its

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1 spending on the purchase of renewable energy resources to

2 be procured by the electric utility for the next plan year

3 by an amount equal to the amounts collected by the utility

4 under the alternative compliance payment rate or rates in

5 the prior year ending May 31.

6 (6) The electric utility shall be entitled to recover

7 all of its costs associated with the procurement of

8 renewable energy credits under plans approved under this

9 Section and Section 16-111.5 of the Public Utilities Act.

10 These costs shall include associated reasonable expenses

11 for implementing the procurement programs, including, but

12 not limited to, the costs of administering and evaluating

13 the Adjustable Block program, through an automatic

14 adjustment clause tariff in accordance with subsection (k)

15 of Section 16-108 of the Public Utilities Act.

16 (7) Renewable energy credits procured from new

17 photovoltaic projects or new distributed renewable energy

18 generation devices under this Section after June 1, 2017

19 (the effective date of Public Act 99-906) must be procured

20 from devices installed by a qualified person in compliance

21 with the requirements of Section 16-128A of the Public

22 Utilities Act and any rules or regulations adopted

23 thereunder.

24 In meeting the renewable energy requirements of this

25 subsection (c), to the extent feasible and consistent with

26 State and federal law, the renewable energy credit

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1 procurements, Adjustable Block solar program, and

2 community renewable generation program shall provide

3 employment opportunities for all segments of the

4 population and workforce, including minority-owned and

5 female-owned business enterprises, and shall not,

6 consistent with State and federal law, discriminate based

7 on race or socioeconomic status.

8 (c-5) Procurement of renewable energy credits from new

9 renewable energy facilities installed at or adjacent to the

10 sites of electric generating facilities that burn or burned

11 coal as their primary fuel source.

12 (1) In addition to the procurement of renewable energy

13 credits pursuant to long-term renewable resources

14 procurement plans in accordance with subsection (c) of

15 this Section and Section 16-111.5 of the Public Utilities

16 Act, the Agency shall conduct procurement events in

17 accordance with this subsection (c-5) for the procurement

18 by electric utilities that served more than 300,000 retail

19 customers in this State as of January 1, 2019 of renewable

20 energy credits from new renewable energy facilities to be

21 installed at or adjacent to the sites of electric

22 generating facilities that, as of January 1, 2016, burned

23 coal as their primary fuel source and meet the other

24 criteria specified in this subsection (c-5). For purposes

25 of this subsection (c-5), "new renewable energy facility"

26 means a new utility-scale solar project as defined in this

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1 Section 1-75. The renewable energy credits procured

2 pursuant to this subsection (c-5) may be included or

3 counted for purposes of compliance with the amounts of

4 renewable energy credits required to be procured pursuant

5 to subsection (c) of this Section to the extent that there

6 are otherwise shortfalls in compliance with such

7 requirements. The procurement of renewable energy credits

8 by electric utilities pursuant to this subsection (c-5)

9 shall be funded solely by revenues collected from the Coal

10 to Solar and Energy Storage Initiative Charge provided for

11 in this subsection (c-5) and subsection (i-5) of Section

12 16-108 of the Public Utilities Act, shall not be funded by

13 revenues collected through any of the other funding

14 mechanisms provided for in subsection (c) of this Section,

15 and shall not be subject to the limitation imposed by

16 subsection (c) on charges to retail customers for costs to

17 procure renewable energy resources pursuant to subsection

18 (c), and shall not be subject to any other requirements or

19 limitations of subsection (c).

20 (2) The Agency shall conduct 2 procurement events to

21 select owners of electric generating facilities meeting

22 the eligibility criteria specified in this subsection

23 (c-5) to enter into long-term contracts to sell renewable

24 energy credits to electric utilities serving more than

25 300,000 retail customers in this State as of January 1,

26 2019. The first procurement event shall be conducted no

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1 later than March 31, 2022, unless the Agency elects to

2 delay it, until no later than May 1, 2022, due to its

3 overall volume of work, and shall be to select owners of

4 electric generating facilities located in this State and

5 south of federal Interstate Highway 80 that meet the

6 eligibility criteria specified in this subsection (c-5).

7 The second procurement event shall be conducted no sooner

8 than September 30, 2022 and no later than October 31, 2022

9 and shall be to select owners of electric generating

10 facilities located anywhere in this State that meet the

11 eligibility criteria specified in this subsection (c-5).

12 The Agency shall establish and announce a time period,

13 which shall begin no later than 30 days prior to the

14 scheduled date for the procurement event, during which

15 applicants may submit applications to be selected as

16 suppliers of renewable energy credits pursuant to this

17 subsection (c-5). The eligibility criteria for selection

18 as a supplier of renewable energy credits pursuant to this

19 subsection (c-5) shall be as follows:

20 (A) The applicant owns an electric generating

21 facility located in this State that: (i) as of January

22 1, 2016, burned coal as its primary fuel to generate

23 electricity; and (ii) has, or had prior to retirement,

24 an electric generating capacity of at least 150

25 megawatts. The electric generating facility can be

26 either: (i) retired as of the date of the procurement

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1 event; or (ii) still operating as of the date of the

2 procurement event.

3 (B) The applicant is not (i) an electric

4 cooperative as defined in Section 3-119 of the Public

5 Utilities Act, or (ii) an entity described in

6 subsection (b)(1) of Section 3-105 of the Public

7 Utilities Act, or an association or consortium of or

8 an entity owned by entities described in (i) or (ii);

9 and the coal-fueled electric generating facility was

10 at one time owned, in whole or in part, by a public

11 utility as defined in Section 3-105 of the Public

12 Utilities Act.

13 (C) If participating in the first procurement

14 event, the applicant proposes and commits to construct

15 and operate, at the site, and if necessary for

16 sufficient space on property adjacent to the existing

17 property, at which the electric generating facility

18 identified in paragraph (A) is located: (i) a new

19 renewable energy facility of at least 20 megawatts but

20 no more than 100 megawatts of electric generating

21 capacity, and (ii) an energy storage facility having a

22 storage capacity equal to at least 2 megawatts and at

23 most 10 megawatts. If participating in the second

24 procurement event, the applicant proposes and commits

25 to construct and operate, at the site, and if

26 necessary for sufficient space on property adjacent to

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1 the existing property, at which the electric

2 generating facility identified in paragraph (A) is

3 located: (i) a new renewable energy facility of at

4 least 5 megawatts but no more than 20 megawatts of

5 electric generating capacity, and (ii) an energy

6 storage facility having a storage capacity equal to at

7 least 0.5 megawatts and at most one megawatt.

8 (D) The applicant agrees that the new renewable

9 energy facility and the energy storage facility will

10 be constructed or installed by a qualified entity or

11 entities in compliance with the requirements of

12 subsection (g) of Section 16-128A of the Public

13 Utilities Act and any rules adopted thereunder.

14 (E) The applicant agrees that personnel operating

15 the new renewable energy facility and the energy

16 storage facility will have the requisite skills,

17 knowledge, training, experience, and competence, which

18 may be demonstrated by completion or current

19 participation and ultimate completion by employees of

20 an accredited or otherwise recognized apprenticeship

21 program for the employee's particular craft, trade, or

22 skill, including through training and education

23 courses and opportunities offered by the owner to

24 employees of the coal-fueled electric generating

25 facility or by previous employment experience

26 performing the employee's particular work skill or

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1 function.

2 (F) The applicant commits that not less than the

3 prevailing wage, as determined pursuant to the

4 Prevailing Wage Act, will be paid to the applicant's

5 employees engaged in construction activities

6 associated with the new renewable energy facility and

7 the new energy storage facility and to the employees

8 of applicant's contractors engaged in construction

9 activities associated with the new renewable energy

10 facility and the new energy storage facility, and

11 that, on or before the commercial operation date of

12 the new renewable energy facility, the applicant shall

13 file a report with the Agency certifying that the

14 requirements of this subparagraph (F) have been met.

15 (G) The applicant commits that if selected, it

16 will negotiate a project labor agreement for the

17 construction of the new renewable energy facility and

18 associated energy storage facility that includes

19 provisions requiring the parties to the agreement to

20 work together to establish diversity threshold

21 requirements and to ensure best efforts to meet

22 diversity targets, improve diversity at the applicable

23 job site, create diverse apprenticeship opportunities,

24 and create opportunities to employ former coal-fired

25 power plant workers.

26 (H) The applicant commits to enter into a contract

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1 or contracts for the applicable duration to provide

2 specified numbers of renewable energy credits each

3 year from the new renewable energy facility to

4 electric utilities that served more than 300,000

5 retail customers in this State as of January 1, 2019,

6 at a price of $30 per renewable energy credit. The

7 price per renewable energy credit shall be fixed at

8 $30 for the applicable duration and the renewable

9 energy credits shall not be indexed renewable energy

10 credits as provided for in item (v) of subparagraph

11 (G) of paragraph (1) of subsection (c) of Section 1-75

12 of this Act. The applicable duration of each contract

13 shall be 20 years, unless the applicant is physically

14 interconnected to the PJM Interconnection, LLC

15 transmission grid and had a generating capacity of at

16 least 1,200 megawatts as of January 1, 2021, in which

17 case the applicable duration of the contract shall be

18 15 years.

19 (I) The applicant's application is certified by an

20 officer of the applicant and by an officer of the

21 applicant's ultimate parent company, if any.

22 (3) An applicant may submit applications to contract

23 to supply renewable energy credits from more than one new

24 renewable energy facility to be constructed at or adjacent

25 to one or more qualifying electric generating facilities

26 owned by the applicant. The Agency may select new

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1 renewable energy facilities to be located at or adjacent

2 to the sites of more than one qualifying electric

3 generation facility owned by an applicant to contract with

4 electric utilities to supply renewable energy credits from

5 such facilities.

6 (4) The Agency shall assess fees to each applicant to

7 recover the Agency's costs incurred in receiving and

8 evaluating applications, conducting the procurement event,

9 developing contracts for sale, delivery and purchase of

10 renewable energy credits, and monitoring the

11 administration of such contracts, as provided for in this

12 subsection (c-5), including fees paid to a procurement

13 administrator retained by the Agency for one or more of

14 these purposes.

15 (5) The Agency shall select the applicants and the new

16 renewable energy facilities to contract with electric

17 utilities to supply renewable energy credits in accordance

18 with this subsection (c-5). In the first procurement

19 event, the Agency shall select applicants and new

20 renewable energy facilities to supply renewable energy

21 credits, at a price of $30 per renewable energy credit,

22 aggregating to no less than 400,000 renewable energy

23 credits per year for the applicable duration, assuming

24 sufficient qualifying applications to supply, in the

25 aggregate, at least that amount of renewable energy

26 credits per year; and not more than 580,000 renewable

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1 energy credits per year for the applicable duration. In

2 the second procurement event, the Agency shall select

3 applicants and new renewable energy facilities to supply

4 renewable energy credits, at a price of $30 per renewable

5 energy credit, aggregating to no more than 625,000

6 renewable energy credits per year less the amount of

7 renewable energy credits each year contracted for as a

8 result of the first procurement event, for the applicable

9 durations. The number of renewable energy credits to be

10 procured as specified in this paragraph (5) shall not be

11 reduced based on renewable energy credits procured in the

12 self-direct renewable energy credit compliance program

13 established pursuant to subparagraph (R) of paragraph (1)

14 of subsection (c) of Section 1-75.

15 (6) The obligation to purchase renewable energy

16 credits from the applicants and their new renewable energy

17 facilities selected by the Agency shall be allocated to

18 the electric utilities based on their respective

19 percentages of kilowatthours delivered to delivery

20 services customers to the aggregate kilowatthour

21 deliveries by the electric utilities to delivery services

22 customers for the year ended December 31, 2021. In order

23 to achieve these allocation percentages between or among

24 the electric utilities, the Agency shall require each

25 applicant that is selected in the procurement event to

26 enter into a contract with each electric utility for the

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1 sale and purchase of renewable energy credits from each

2 new renewable energy facility to be constructed and

3 operated by the applicant, with the sale and purchase

4 obligations under the contracts to aggregate to the total

5 number of renewable energy credits per year to be supplied

6 by the applicant from the new renewable energy facility.

7 (7) The Agency shall submit its proposed selection of

8 applicants, new renewable energy facilities to be

9 constructed, and renewable energy credit amounts for each

10 procurement event to the Commission for approval. The

11 Commission shall, within 2 business days after receipt of

12 the Agency's proposed selections, approve the proposed

13 selections if it determines that the applicants and the

14 new renewable energy facilities to be constructed meet the

15 selection criteria set forth in this subsection (c-5) and

16 that the Agency seeks approval for contracts of applicable

17 durations aggregating to no more than the maximum amount

18 of renewable energy credits per year authorized by this

19 subsection (c-5) for the procurement event, at a price of

20 $30 per renewable energy credit.

21 (8) The Agency, in conjunction with its procurement

22 administrator if one is retained, the electric utilities,

23 and potential applicants for contracts to produce and

24 supply renewable energy credits pursuant to this

25 subsection (c-5), shall develop a standard form contract

26 for the sale, delivery and purchase of renewable energy

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1 credits pursuant to this subsection (c-5). Each contract

2 resulting from the first procurement event shall allow for

3 a commercial operation date for the new renewable energy

4 facility of either June 1, 2023 or June 1, 2024, with such

5 dates subject to adjustment as provided in this paragraph.

6 Each contract resulting from the second procurement event

7 shall provide for a commercial operation date on June 1

8 next occurring up to 48 months after execution of the

9 contract. Each contract shall provide that the owner shall

10 receive payments for renewable energy credits for the

11 applicable durations beginning with the commercial

12 operation date of the new renewable energy facility. The

13 form contract shall provide for adjustments to the

14 commercial operation and payment start dates as needed due

15 to any delays in completing the procurement and

16 contracting processes, in finalizing interconnection

17 agreements and installing interconnection facilities, and

18 in obtaining other necessary governmental permits and

19 approvals. The form contract shall be, to the maximum

20 extent possible, consistent with standard electric

21 industry contracts for sale, delivery, and purchase of

22 renewable energy credits while taking into account the

23 specific requirements of this subsection (c-5). The form

24 contract shall provide for over-delivery and

25 under-delivery of renewable energy credits within

26 reasonable ranges during each 12-month period and penalty,

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1 default, and enforcement provisions for failure of the

2 selling party to deliver renewable energy credits as

3 specified in the contract and to comply with the

4 requirements of this subsection (c-5). The standard form

5 contract shall specify that all renewable energy credits

6 delivered to the electric utility pursuant to the contract

7 shall be retired. The Agency shall make the proposed

8 contracts available for a reasonable period for comment by

9 potential applicants, and shall publish the final form

10 contract at least 30 days before the date of the first

11 procurement event.

12 (9) Coal to Solar and Energy Storage Initiative

13 Charge.

14 (A) By no later than July 1, 2022, each electric

15 utility that served more than 300,000 retail customers

16 in this State as of January 1, 2019 shall file a tariff

17 with the Commission for the billing and collection of

18 a Coal to Solar and Energy Storage Initiative Charge

19 in accordance with subsection (i-5) of Section 16-108

20 of the Public Utilities Act, with such tariff to be

21 effective, following review and approval or

22 modification by the Commission, beginning January 1,

23 2023. The tariff shall provide for the calculation and

24 setting of the electric utility's Coal to Solar and

25 Energy Storage Initiative Charge to collect revenues

26 estimated to be sufficient, in the aggregate, (i) to

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1 enable the electric utility to pay for the renewable

2 energy credits it has contracted to purchase in the

3 delivery year beginning June 1, 2023 and each delivery

4 year thereafter from new renewable energy facilities

5 located at the sites of qualifying electric generating

6 facilities, and (ii) to fund the grant payments to be

7 made in each delivery year by the Department of

8 Commerce and Economic Opportunity, or any successor

9 department or agency, which shall be referred to in

10 this subsection (c-5) as the Department, pursuant to

11 paragraph (10) of this subsection (c-5). The electric

12 utility's tariff shall provide for the billing and

13 collection of the Coal to Solar and Energy Storage

14 Initiative Charge on each kilowatthour of electricity

15 delivered to its delivery services customers within

16 its service territory and shall provide for an annual

17 reconciliation of revenues collected with actual

18 costs, in accordance with subsection (i-5) of Section

19 16-108 of the Public Utilities Act.

20 (B) Each electric utility shall remit on a monthly

21 basis to the State Treasurer, for deposit in the Coal

22 to Solar and Energy Storage Initiative Fund provided

23 for in this subsection (c-5), the electric utility's

24 collections of the Coal to Solar and Energy Storage

25 Initiative Charge in the amount estimated to be needed

26 by the Department for grant payments pursuant to grant

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1 contracts entered into by the Department pursuant to

2 paragraph (10) of this subsection (c-5).

3 (10) Coal to Solar and Energy Storage Initiative Fund.

4 (A) The Coal to Solar and Energy Storage

5 Initiative Fund is established as a special fund in

6 the State treasury. The Coal to Solar and Energy

7 Storage Initiative Fund is authorized to receive, by

8 statutory deposit, that portion specified in item (B)

9 of paragraph (9) of this subsection (c-5) of moneys

10 collected by electric utilities through imposition of

11 the Coal to Solar and Energy Storage Initiative Charge

12 required by this subsection (c-5). The Coal to Solar

13 and Energy Storage Initiative Fund shall be

14 administered by the Department to provide grants to

15 support the installation and operation of energy

16 storage facilities at the sites of qualifying electric

17 generating facilities meeting the criteria specified

18 in this paragraph (10).

19 (B) The Coal to Solar and Energy Storage

20 Initiative Fund shall not be subject to sweeps,

21 administrative charges, or chargebacks, including, but

22 not limited to, those authorized under Section 8h of

23 the State Finance Act, that would in any way result in

24 the transfer of those funds from the Coal to Solar and

25 Energy Storage Initiative Fund to any other fund of

26 this State or in having any such funds utilized for any

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1 purpose other than the express purposes set forth in

2 this paragraph (10).

3 (C) The Department shall utilize up to

4 $280,500,000 in the Coal to Solar and Energy Storage

5 Initiative Fund for grants, assuming sufficient

6 qualifying applicants, to support installation of

7 energy storage facilities at the sites of up to 3

8 qualifying electric generating facilities located in

9 the Midcontinent Independent System Operator, Inc.,

10 region in Illinois and the sites of up to 2 qualifying

11 electric generating facilities located in the PJM

12 Interconnection, LLC region in Illinois that meet the

13 criteria set forth in this subparagraph (C). The

14 criteria for receipt of a grant pursuant to this

15 subparagraph (C) are as follows:

16 (1) the electric generating facility at the

17 site has, or had prior to retirement, an electric

18 generating capacity of at least 150 megawatts;

19 (2) the electric generating facility burns (or

20 burned prior to retirement) coal as its primary

21 source of fuel;

22 (3) if the electric generating facility is

23 retired, it was retired subsequent to January 1,

24 2016;

25 (4) the owner of the electric generating

26 facility has not been selected by the Agency

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1 pursuant to this subsection (c-5) of this Section

2 to enter into a contract to sell renewable energy

3 credits to one or more electric utilities from a

4 new renewable energy facility located or to be

5 located at or adjacent to the site at which the

6 electric generating facility is located;

7 (5) the electric generating facility located

8 at the site was at one time owned, in whole or in

9 part, by a public utility as defined in Section

10 3-105 of the Public Utilities Act;

11 (6) the electric generating facility at the

12 site is not owned by (i) an electric cooperative

13 as defined in Section 3-119 of the Public

14 Utilities Act, or (ii) an entity described in

15 subsection (b)(1) of Section 3-105 of the Public

16 Utilities Act, or an association or consortium of

17 or an entity owned by entities described in items

18 (i) or (ii);

19 (7) the proposed energy storage facility at

20 the site will have energy storage capacity of at

21 least 37 megawatts;

22 (8) the owner commits to place the energy

23 storage facility into commercial operation on

24 either June 1, 2023, June 1, 2024, or June 1, 2025,

25 with such date subject to adjustment as needed due

26 to any delays in completing the grant contracting

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1 process, in finalizing interconnection agreements

2 and in installing interconnection facilities, and

3 in obtaining necessary governmental permits and

4 approvals;

5 (9) the owner agrees that the new energy

6 storage facility will be constructed or installed

7 by a qualified entity or entities consistent with

8 the requirements of subsection (g) of Section

9 16-128A of the Public Utilities Act and any rules

10 adopted under that Section;

11 (10) the owner agrees that personnel operating

12 the energy storage facility will have the

13 requisite skills, knowledge, training, experience,

14 and competence, which may be demonstrated by

15 completion or current participation and ultimate

16 completion by employees of an accredited or

17 otherwise recognized apprenticeship program for

18 the employee's particular craft, trade, or skill,

19 including through training and education courses

20 and opportunities offered by the owner to

21 employees of the coal-fueled electric generating

22 facility or by previous employment experience

23 performing the employee's particular work skill or

24 function;

25 (11) the owner commits that not less than the

26 prevailing wage, as determined pursuant to the

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1 Prevailing Wage Act, will be paid to the owner's

2 employees engaged in construction activities

3 associated with the new energy storage facility

4 and to the employees of the owner's contractors

5 engaged in construction activities associated with

6 the new energy storage facility, and that, on or

7 before the commercial operation date of the new

8 energy storage facility, the owner shall file a

9 report with the Department certifying that the

10 requirements of this subparagraph (11) have been

11 met; and

12 (12) the owner commits that if selected to

13 receive a grant, it will negotiate a project labor

14 agreement for the construction of the new energy

15 storage facility that includes provisions

16 requiring the parties to the agreement to work

17 together to establish diversity threshold

18 requirements and to ensure best efforts to meet

19 diversity targets, improve diversity at the

20 applicable job site, create diverse apprenticeship

21 opportunities, and create opportunities to employ

22 former coal-fired power plant workers.

23 The Department shall accept applications for this

24 grant program until March 31, 2022 and shall announce

25 the award of grants no later than June 1, 2022. The

26 Department shall make the grant payments to a

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1 recipient in equal annual amounts for 10 years

2 following the date the energy storage facility is

3 placed into commercial operation. The annual grant

4 payments to a qualifying energy storage facility shall

5 be $110,000 per megawatt of energy storage capacity,

6 with total annual grant payments pursuant to this

7 subparagraph (C) for qualifying energy storage

8 facilities not to exceed $28,050,000 in any year.

9 (D) Grants of funding for energy storage

10 facilities pursuant to subparagraph (C) of this

11 paragraph (10), from the Coal to Solar and Energy

12 Storage Initiative Fund, shall be memorialized in

13 grant contracts between the Department and the

14 recipient. The grant contracts shall specify the date

15 or dates in each year on which the annual grant

16 payments shall be paid.

17 (E) All disbursements from the Coal to Solar and

18 Energy Storage Initiative Fund shall be made only upon

19 warrants of the Comptroller drawn upon the Treasurer

20 as custodian of the Fund upon vouchers signed by the

21 Director of the Department or by the person or persons

22 designated by the Director of the Department for that

23 purpose. The Comptroller is authorized to draw the

24 warrants upon vouchers so signed. The Treasurer shall

25 accept all written warrants so signed and shall be

26 released from liability for all payments made on those

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1 warrants.

2 (11) Diversity, equity, and inclusion plans.

3 (A) Each applicant selected in a procurement event

4 to contract to supply renewable energy credits in

5 accordance with this subsection (c-5) and each owner

6 selected by the Department to receive a grant or

7 grants to support the construction and operation of a

8 new energy storage facility or facilities in

9 accordance with this subsection (c-5) shall, within 60

10 days following the Commission's approval of the

11 applicant to contract to supply renewable energy

12 credits or within 60 days following execution of a

13 grant contract with the Department, as applicable,

14 submit to the Commission a diversity, equity, and

15 inclusion plan setting forth the applicant's or

16 owner's numeric goals for the diversity composition of

17 its supplier entities for the new renewable energy

18 facility or new energy storage facility, as

19 applicable, which shall be referred to for purposes of

20 this paragraph (11) as the project, and the

21 applicant's or owner's action plan and schedule for

22 achieving those goals.

23 (B) For purposes of this paragraph (11), diversity

24 composition shall be based on the percentage, which

25 shall be a minimum of 25%, of eligible expenditures

26 for contract awards for materials and services (which

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1 shall be defined in the plan) to business enterprises

2 owned by minority persons, women, or persons with

3 disabilities as defined in Section 2 of the Business

4 Enterprise for Minorities, Women, and Persons with

5 Disabilities Act, to LGBTQ business enterprises, to

6 veteran-owned business enterprises, and to business

7 enterprises located in environmental justice

8 communities. The diversity composition goals of the

9 plan may include eligible expenditures in areas for

10 vendor or supplier opportunities in addition to

11 development and construction of the project, and may

12 exclude from eligible expenditures materials and

13 services with limited market availability, limited

14 production and availability from suppliers in the

15 United States, such as solar panels and storage

16 batteries, and material and services that are subject

17 to critical energy infrastructure or cybersecurity

18 requirements or restrictions. The plan may provide

19 that the diversity composition goals may be met

20 through Tier 1 Direct or Tier 2 subcontracting

21 expenditures or a combination thereof for the project.

22 (C) The plan shall provide for, but not be limited

23 to: (i) internal initiatives, including multi-tier

24 initiatives, by the applicant or owner, or by its

25 engineering, procurement and construction contractor

26 if one is used for the project, which for purposes of

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1 this paragraph (11) shall be referred to as the EPC

2 contractor, to enable diverse businesses to be

3 considered fairly for selection to provide materials

4 and services; (ii) requirements for the applicant or

5 owner or its EPC contractor to proactively solicit and

6 utilize diverse businesses to provide materials and

7 services; and (iii) requirements for the applicant or

8 owner or its EPC contractor to hire a diverse

9 workforce for the project. The plan shall include a

10 description of the applicant's or owner's diversity

11 recruiting efforts both for the project and for other

12 areas of the applicant's or owner's business

13 operations. The plan shall provide for the imposition

14 of financial penalties on the applicant's or owner's

15 EPC contractor for failure to exercise best efforts to

16 comply with and execute the EPC contractor's diversity

17 obligations under the plan. The plan may provide for

18 the applicant or owner to set aside a portion of the

19 work on the project to serve as an incubation program

20 for qualified businesses, as specified in the plan,

21 owned by minority persons, women, persons with

22 disabilities, LGBTQ persons, and veterans, and

23 businesses located in environmental justice

24 communities, seeking to enter the renewable energy

25 industry.

26 (D) The applicant or owner may submit a revised or

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1 updated plan to the Commission from time to time as

2 circumstances warrant. The applicant or owner shall

3 file annual reports with the Commission detailing the

4 applicant's or owner's progress in implementing its

5 plan and achieving its goals and any modifications the

6 applicant or owner has made to its plan to better

7 achieve its diversity, equity and inclusion goals. The

8 applicant or owner shall file a final report on the

9 fifth June 1 following the commercial operation date

10 of the new renewable energy resource or new energy

11 storage facility, but the applicant or owner shall

12 thereafter continue to be subject to applicable

13 reporting requirements of Section 5-117 of the Public

14 Utilities Act.

15 (c-10) Equity accountability system. It is the purpose of

16 this subsection (c-10) to create an equity accountability

17 system, which includes the minimum equity standards for all

18 renewable energy procurements, the equity category of the

19 Adjustable Block Program, and the equity prioritization for

20 noncompetitive procurements, that is successful in advancing

21 priority access to the clean energy economy for businesses and

22 workers from communities that have been excluded from economic

23 opportunities in the energy sector, have been subject to

24 disproportionate levels of pollution, and have

25 disproportionately experienced negative public health

26 outcomes. Further, it is the purpose of this subsection to

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1 ensure that this equity accountability system is successful in

2 advancing equity across Illinois by providing access to the

3 clean energy economy for businesses and workers from

4 communities that have been historically excluded from economic

5 opportunities in the energy sector, have been subject to

6 disproportionate levels of pollution, and have

7 disproportionately experienced negative public health

8 outcomes.

9 (1) Minimum equity standards. The Agency shall create

10 programs with the purpose of increasing access to and

11 development of equity eligible contractors, who are prime

12 contractors and subcontractors, across all of the programs

13 it manages. All applications for renewable energy credit

14 procurements shall comply with specific minimum equity

15 commitments. Starting in the delivery year immediately

16 following the next long-term renewable resources

17 procurement plan, at least 10% of the project workforce

18 for each entity participating in a procurement program

19 outlined in this subsection (c-10) must be done by equity

20 eligible persons or equity eligible contractors. The

21 Agency shall increase the minimum percentage each delivery

22 year thereafter by increments that ensure a statewide

23 average of 30% of the project workforce for each entity

24 participating in a procurement program is done by equity

25 eligible persons or equity eligible contractors by 2030.

26 The Agency shall propose a schedule of percentage

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1 increases to the minimum equity standards in its draft

2 revised renewable energy resources procurement plan

3 submitted to the Commission for approval pursuant to

4 paragraph (5) of subsection (b) of Section 16-111.5 of the

5 Public Utilities Act. In determining these annual

6 increases, the Agency shall have the discretion to

7 establish different minimum equity standards for different

8 types of procurements and different regions of the State

9 if the Agency finds that doing so will further the

10 purposes of this subsection (c-10). The proposed schedule

11 of annual increases shall be revisited and updated on an

12 annual basis. Revisions shall be developed with

13 stakeholder input, including from equity eligible persons,

14 equity eligible contractors, clean energy industry

15 representatives, and community-based organizations that

16 work with such persons and contractors.

17 (A) At the start of each delivery year, the Agency

18 shall require a compliance plan from each entity

19 participating in a procurement program of subsection

20 (c) of this Section that demonstrates how they will

21 achieve compliance with the minimum equity standard

22 percentage for work completed in that delivery year.

23 If an entity applies for its approved vendor or

24 designee status between delivery years, the Agency

25 shall require a compliance plan at the time of

26 application.

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1 (B) Halfway through each delivery year, the Agency

2 shall require each entity participating in a

3 procurement program to confirm that it will achieve

4 compliance in that delivery year, when applicable. The

5 Agency may offer corrective action plans to entities

6 that are not on track to achieve compliance.

7 (C) At the end of each delivery year, each entity

8 participating and completing work in that delivery

9 year in a procurement program of subsection (c) shall

10 submit a report to the Agency that demonstrates how it

11 achieved compliance with the minimum equity standards

12 percentage for that delivery year.

13 (D) The Agency shall prohibit participation in

14 procurement programs by an approved vendor or

15 designee, as applicable, or entities with which an

16 approved vendor or designee, as applicable, shares a

17 common parent company if an approved vendor or

18 designee, as applicable, failed to meet the minimum

19 equity standards for the prior delivery year. Waivers

20 approved for lack of equity eligible persons or equity

21 eligible contractors in a geographic area of a project

22 shall not count against the approved vendor or

23 designee. The Agency shall offer a corrective action

24 plan for any such entities to assist them in obtaining

25 compliance and shall allow continued access to

26 procurement programs upon an approved vendor or

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1 designee demonstrating compliance.

2 (E) The Agency shall pursue efficiencies achieved

3 by combining with other approved vendor or designee

4 reporting.

5 (2) Equity accountability system within the Adjustable

6 Block program. The equity category described in item (vi)

7 of subparagraph (K) of subsection (c) is only available to

8 applicants that are equity eligible contractors.

9 (3) Equity accountability system within competitive

10 procurements. Through its long-term renewable resources

11 procurement plan, the Agency shall develop requirements

12 for ensuring that competitive procurement processes,

13 including utility-scale solar, utility-scale wind, and

14 brownfield site photovoltaic projects, advance the equity

15 goals of this subsection (c-10). Subject to Commission

16 approval, the Agency shall develop bid application

17 requirements and a bid evaluation methodology for ensuring

18 that utilization of equity eligible contractors, whether

19 as bidders or as participants on project development, is

20 optimized, including requiring that winning or successful

21 applicants for utility-scale projects are or will partner

22 with equity eligible contractors and giving preference to

23 bids through which a higher portion of contract value

24 flows to equity eligible contractors. To the extent

25 practicable, entities participating in competitive

26 procurements shall also be required to meet all the equity

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1 accountability requirements for approved vendors and their

2 designees under this subsection (c-10). In developing

3 these requirements, the Agency shall also consider whether

4 equity goals can be further advanced through additional

5 measures.

6 (4) In the first revision to the long-term renewable

7 energy resources procurement plan and each revision

8 thereafter, the Agency shall include the following:

9 (A) The current status and number of equity

10 eligible contractors listed in the Energy Workforce

11 Equity Database designed in subsection (c-25),

12 including the number of equity eligible contractors

13 with current certifications as issued by the Agency.

14 (B) A mechanism for measuring, tracking, and

15 reporting project workforce at the approved vendor or

16 designee level, as applicable, which shall include a

17 measurement methodology and records to be made

18 available for audit by the Agency or the Program

19 Administrator.

20 (C) A program for approved vendors, designees,

21 eligible persons, and equity eligible contractors to

22 receive trainings, guidance, and other support from

23 the Agency or its designee regarding the equity

24 category outlined in item (vi) of subparagraph (K) of

25 paragraph (1) of subsection (c) and in meeting the

26 minimum equity standards of this subsection (c-10).

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1 (D) A process for certifying equity eligible

2 contractors and equity eligible persons. The

3 certification process shall coordinate with the Energy

4 Workforce Equity Database set forth in subsection

5 (c-25).

6 (E) An application for waiver of the minimum

7 equity standards of this subsection, which the Agency

8 shall have the discretion to grant in rare

9 circumstances. The Agency may grant such a waiver

10 where the applicant provides evidence of significant

11 efforts toward meeting the minimum equity commitment,

12 including: use of the Energy Workforce Equity

13 Database; efforts to hire or contract with entities

14 that hire eligible persons; and efforts to establish

15 contracting relationships with eligible contractors.

16 The Agency shall support applicants in understanding

17 the Energy Workforce Equity Database and other

18 resources for pursuing compliance of the minimum

19 equity standards. Waivers shall be project-specific,

20 unless the Agency deems it necessary to grant a waiver

21 across a portfolio of projects, and in effect for no

22 longer than one year. Any waiver extension or

23 subsequent waiver request from an applicant shall be

24 subject to the requirements of this Section and shall

25 specify efforts made to reach compliance. When

26 considering whether to grant a waiver, and to what

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1 extent, the Agency shall consider the degree to which

2 similarly situated applicants have been able to meet

3 these minimum equity commitments. For repeated waiver

4 requests for specific lack of eligible persons or

5 eligible contractors available, the Agency shall make

6 recommendations to target recruitment to add such

7 eligible persons or eligible contractors to the

8 database.

9 (5) The Agency shall collect information about work on

10 projects or portfolios of projects subject to these

11 minimum equity standards to ensure compliance with this

12 subsection (c-10). Reporting in furtherance of this

13 requirement may be combined with other annual reporting

14 requirements. Such reporting shall include proof of

15 certification of each equity eligible contractor or equity

16 eligible person during the applicable time period.

17 (6) The Agency shall keep confidential all information

18 and communication that provides private or personal

19 information.

20 (7) Modifications to the equity accountability system.

21 As part of the update of the long-term renewable resources

22 procurement plan to be initiated in 2023, or sooner if the

23 Agency deems necessary, the Agency shall determine the

24 extent to which the equity accountability system described

25 in this subsection (c-10) has advanced the goals of this

26 amendatory Act of the 102nd General Assembly, including

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1 through the inclusion of equity eligible persons and

2 equity eligible contractors in renewable energy credit

3 projects. If the Agency finds that the equity

4 accountability system has failed to meet those goals to

5 its fullest potential, the Agency may revise the following

6 criteria for future Agency procurements: (A) the

7 percentage of project workforce, or other appropriate

8 workforce measure, certified as equity eligible persons or

9 equity eligible contractors; (B) definitions for equity

10 investment eligible persons and equity investment eligible

11 community; and (C) such other modifications necessary to

12 advance the goals of this amendatory Act of the 102nd

13 General Assembly effectively. Such revised criteria may

14 also establish distinct equity accountability systems for

15 different types of procurements or different regions of

16 the State if the Agency finds that doing so will further

17 the purposes of such programs. Revisions shall be

18 developed with stakeholder input, including from equity

19 eligible persons, equity eligible contractors, and

20 community-based organizations that work with such persons

21 and contractors.

22 (c-15) Racial discrimination elimination powers and

23 process.

24 (1) Purpose. It is the purpose of this subsection to

25 empower the Agency and other State actors to remedy racial

26 discrimination in Illinois' clean energy economy as

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1 effectively and expediently as possible, including through

2 the use of race-conscious remedies, such as race-conscious

3 contracting and hiring goals, as consistent with State and

4 federal law.

5 (2) Racial disparity and discrimination review

6 process.

7 (A) Within one year after awarding contracts using

8 the equity actions processes established in this

9 Section, the Agency shall publish a report evaluating

10 the effectiveness of the equity actions point criteria

11 of this Section in increasing participation of equity

12 eligible persons and equity eligible contractors. The

13 report shall disaggregate participating workers and

14 contractors by race and ethnicity. The report shall be

15 forwarded to the Governor, the General Assembly, and

16 the Illinois Commerce Commission and be made available

17 to the public.

18 (B) As soon as is practicable thereafter, the

19 Agency, in consultation with the Department of

20 Commerce and Economic Opportunity, Department of

21 Labor, and other agencies that may be relevant, shall

22 commission and publish a disparity and availability

23 study that measures the presence and impact of

24 discrimination on minority businesses and workers in

25 Illinois' clean energy economy. The Agency may hire

26 consultants and experts to conduct the disparity and

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1 availability study, with the retention of those

2 consultants and experts exempt from the requirements

3 of Section 20-10 of the Illinois Procurement Code. The

4 Illinois Power Agency shall forward a copy of its

5 findings and recommendations to the Governor, the

6 General Assembly, and the Illinois Commerce

7 Commission. If the disparity and availability study

8 establishes a strong basis in evidence that there is

9 discrimination in Illinois' clean energy economy, the

10 Agency, Department of Commerce and Economic

11 Opportunity, Department of Labor, Department of

12 Corrections, and other appropriate agencies shall take

13 appropriate remedial actions, including race-conscious

14 remedial actions as consistent with State and federal

15 law, to effectively remedy this discrimination. Such

16 remedies may include modification of the equity

17 accountability system as described in subsection

18 (c-10).

19 (c-20) Program data collection.

20 (1) Purpose. Data collection, data analysis, and

21 reporting are critical to ensure that the benefits of the

22 clean energy economy provided to Illinois residents and

23 businesses are equitably distributed across the State. The

24 Agency shall collect data from program applicants in order

25 to track and improve equitable distribution of benefits

26 across Illinois communities for all procurements the

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1 Agency conducts. The Agency shall use this data to, among

2 other things, measure any potential impact of racial

3 discrimination on the distribution of benefits and provide

4 information necessary to correct any discrimination

5 through methods consistent with State and federal law.

6 (2) Agency collection of program data. The Agency

7 shall collect demographic and geographic data for each

8 entity awarded contracts under any Agency-administered

9 program.

10 (3) Required information to be collected. The Agency

11 shall collect the following information from applicants

12 and program participants where applicable:

13 (A) demographic information, including racial or

14 ethnic identity for real persons employed, contracted,

15 or subcontracted through the program and owners of

16 businesses or entities that apply to receive renewable

17 energy credits from the Agency;

18 (B) geographic location of the residency of real

19 persons employed, contracted, or subcontracted through

20 the program and geographic location of the

21 headquarters of the business or entity that applies to

22 receive renewable energy credits from the Agency; and

23 (C) any other information the Agency determines is

24 necessary for the purpose of achieving the purpose of

25 this subsection.

26 (4) Publication of collected information. The Agency

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1 shall publish, at least annually, information on the

2 demographics of program participants on an aggregate

3 basis.

4 (5) Nothing in this subsection shall be interpreted to

5 limit the authority of the Agency, or other agency or

6 department of the State, to require or collect demographic

7 information from applicants of other State programs.

8 (c-25) Energy Workforce Equity Database.

9 (1) The Agency, in consultation with the Department of

10 Commerce and Economic Opportunity, shall create an Energy

11 Workforce Equity Database, and may contract with a third

12 party to do so ("database program administrator"). If the

13 Department decides to contract with a third party, that

14 third party shall be exempt from the requirements of

15 Section 20-10 of the Illinois Procurement Code. The Energy

16 Workforce Equity Database shall be a searchable database

17 of suppliers, vendors, and subcontractors for clean energy

18 industries that is:

19 (A) publicly accessible;

20 (B) easy for people to find and use;

21 (C) organized by company specialty or field;

22 (D) region-specific; and

23 (E) populated with information including, but not

24 limited to, contacts for suppliers, vendors, or

25 subcontractors who are minority and women-owned

26 business enterprise certified or who participate or

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1 have participated in any of the programs described in

2 this Act.

3 (2) The Agency shall create an easily accessible,

4 public facing online tool using the database information

5 that includes, at a minimum, the following:

6 (A) a map of environmental justice and equity

7 investment eligible communities;

8 (B) job postings and recruiting opportunities;

9 (C) a means by which recruiting clean energy

10 companies can find and interact with current or former

11 participants of clean energy workforce training

12 programs;

13 (D) information on workforce training service

14 providers and training opportunities available to

15 prospective workers;

16 (E) renewable energy company diversity reporting;

17 (F) a list of equity eligible contractors with

18 their contact information, types of work performed,

19 and locations worked in;

20 (G) reporting on outcomes of the programs

21 described in the workforce programs of the Energy

22 Transition Act, including information such as, but not

23 limited to, retention rate, graduation rate, and

24 placement rates of trainees; and

25 (H) information about the Jobs and Environmental

26 Justice Grant Program, the Clean Energy Jobs and

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1 Justice Fund, and other sources of capital.

2 (3) The Agency shall ensure the database is regularly

3 updated to ensure information is current and shall

4 coordinate with the Department of Commerce and Economic

5 Opportunity to ensure that it includes information on

6 individuals and entities that are or have participated in

7 the Clean Jobs Workforce Network Program, Clean Energy

8 Contractor Incubator Program, Returning Residents Clean

9 Jobs Training Program, or Clean Energy Primes Contractor

10 Accelerator Program.

11 (c-30) Enforcement of minimum equity standards. All

12 entities seeking renewable energy credits must submit an

13 annual report to demonstrate compliance with each of the

14 equity commitments required under subsection (c-10). If the

15 Agency concludes the entity has not met or maintained its

16 minimum equity standards required under the applicable

17 subparagraphs under subsection (c-10), the Agency shall deny

18 the entity's ability to participate in procurement programs in

19 subsection (c), including by withholding approved vendor or

20 designee status. The Agency may require the entity to enter

21 into a corrective action plan. An entity that is not

22 recertified for failing to meet required equity actions in

23 subparagraph (c-10) may reapply once they have a corrective

24 action plan and achieve compliance with the minimum equity

25 standards.

26 (d) Clean coal portfolio standard.

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1 (1) The procurement plans shall include electricity

2 generated using clean coal. Each utility shall enter into

3 one or more sourcing agreements with the initial clean

4 coal facility, as provided in paragraph (3) of this

5 subsection (d), covering electricity generated by the

6 initial clean coal facility representing at least 5% of

7 each utility's total supply to serve the load of eligible

8 retail customers in 2015 and each year thereafter, as

9 described in paragraph (3) of this subsection (d), subject

10 to the limits specified in paragraph (2) of this

11 subsection (d). It is the goal of the State that by January

12 1, 2025, 25% of the electricity used in the State shall be

13 generated by cost-effective clean coal facilities. For

14 purposes of this subsection (d), "cost-effective" means

15 that the expenditures pursuant to such sourcing agreements

16 do not cause the limit stated in paragraph (2) of this

17 subsection (d) to be exceeded and do not exceed cost-based

18 benchmarks, which shall be developed to assess all

19 expenditures pursuant to such sourcing agreements covering

20 electricity generated by clean coal facilities, other than

21 the initial clean coal facility, by the procurement

22 administrator, in consultation with the Commission staff,

23 Agency staff, and the procurement monitor and shall be

24 subject to Commission review and approval.

25 A utility party to a sourcing agreement shall

26 immediately retire any emission credits that it receives

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1 in connection with the electricity covered by such

2 agreement.

3 Utilities shall maintain adequate records documenting

4 the purchases under the sourcing agreement to comply with

5 this subsection (d) and shall file an accounting with the

6 load forecast that must be filed with the Agency by July 15

7 of each year, in accordance with subsection (d) of Section

8 16-111.5 of the Public Utilities Act.

9 A utility shall be deemed to have complied with the

10 clean coal portfolio standard specified in this subsection

11 (d) if the utility enters into a sourcing agreement as

12 required by this subsection (d).

13 (2) For purposes of this subsection (d), the required

14 execution of sourcing agreements with the initial clean

15 coal facility for a particular year shall be measured as a

16 percentage of the actual amount of electricity

17 (megawatt-hours) supplied by the electric utility to

18 eligible retail customers in the planning year ending

19 immediately prior to the agreement's execution. For

20 purposes of this subsection (d), the amount paid per

21 kilowatthour means the total amount paid for electric

22 service expressed on a per kilowatthour basis. For

23 purposes of this subsection (d), the total amount paid for

24 electric service includes without limitation amounts paid

25 for supply, transmission, distribution, surcharges and

26 add-on taxes.

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1 Notwithstanding the requirements of this subsection

2 (d), the total amount paid under sourcing agreements with

3 clean coal facilities pursuant to the procurement plan for

4 any given year shall be reduced by an amount necessary to

5 limit the annual estimated average net increase due to the

6 costs of these resources included in the amounts paid by

7 eligible retail customers in connection with electric

8 service to:

9 (A) in 2010, no more than 0.5% of the amount paid

10 per kilowatthour by those customers during the year

11 ending May 31, 2009;

12 (B) in 2011, the greater of an additional 0.5% of

13 the amount paid per kilowatthour by those customers

14 during the year ending May 31, 2010 or 1% of the amount

15 paid per kilowatthour by those customers during the

16 year ending May 31, 2009;

17 (C) in 2012, the greater of an additional 0.5% of

18 the amount paid per kilowatthour by those customers

19 during the year ending May 31, 2011 or 1.5% of the

20 amount paid per kilowatthour by those customers during

21 the year ending May 31, 2009;

22 (D) in 2013, the greater of an additional 0.5% of

23 the amount paid per kilowatthour by those customers

24 during the year ending May 31, 2012 or 2% of the amount

25 paid per kilowatthour by those customers during the

26 year ending May 31, 2009; and

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1 (E) thereafter, the total amount paid under

2 sourcing agreements with clean coal facilities

3 pursuant to the procurement plan for any single year

4 shall be reduced by an amount necessary to limit the

5 estimated average net increase due to the cost of

6 these resources included in the amounts paid by

7 eligible retail customers in connection with electric

8 service to no more than the greater of (i) 2.015% of

9 the amount paid per kilowatthour by those customers

10 during the year ending May 31, 2009 or (ii) the

11 incremental amount per kilowatthour paid for these

12 resources in 2013. These requirements may be altered

13 only as provided by statute.

14 No later than June 30, 2015, the Commission shall

15 review the limitation on the total amount paid under

16 sourcing agreements, if any, with clean coal facilities

17 pursuant to this subsection (d) and report to the General

18 Assembly its findings as to whether that limitation unduly

19 constrains the amount of electricity generated by

20 cost-effective clean coal facilities that is covered by

21 sourcing agreements.

22 (3) Initial clean coal facility. In order to promote

23 development of clean coal facilities in Illinois, each

24 electric utility subject to this Section shall execute a

25 sourcing agreement to source electricity from a proposed

26 clean coal facility in Illinois (the "initial clean coal

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1 facility") that will have a nameplate capacity of at least

2 500 MW when commercial operation commences, that has a

3 final Clean Air Act permit on June 1, 2009 (the effective

4 date of Public Act 95-1027), and that will meet the

5 definition of clean coal facility in Section 1-10 of this

6 Act when commercial operation commences. The sourcing

7 agreements with this initial clean coal facility shall be

8 subject to both approval of the initial clean coal

9 facility by the General Assembly and satisfaction of the

10 requirements of paragraph (4) of this subsection (d) and

11 shall be executed within 90 days after any such approval

12 by the General Assembly. The Agency and the Commission

13 shall have authority to inspect all books and records

14 associated with the initial clean coal facility during the

15 term of such a sourcing agreement. A utility's sourcing

16 agreement for electricity produced by the initial clean

17 coal facility shall include:

18 (A) a formula contractual price (the "contract

19 price") approved pursuant to paragraph (4) of this

20 subsection (d), which shall:

21 (i) be determined using a cost of service

22 methodology employing either a level or deferred

23 capital recovery component, based on a capital

24 structure consisting of 45% equity and 55% debt,

25 and a return on equity as may be approved by the

26 Federal Energy Regulatory Commission, which in any

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1 case may not exceed the lower of 11.5% or the rate

2 of return approved by the General Assembly

3 pursuant to paragraph (4) of this subsection (d);

4 and

5 (ii) provide that all miscellaneous net

6 revenue, including but not limited to net revenue

7 from the sale of emission allowances, if any,

8 substitute natural gas, if any, grants or other

9 support provided by the State of Illinois or the

10 United States Government, firm transmission

11 rights, if any, by-products produced by the

12 facility, energy or capacity derived from the

13 facility and not covered by a sourcing agreement

14 pursuant to paragraph (3) of this subsection (d)

15 or item (5) of subsection (d) of Section 16-115 of

16 the Public Utilities Act, whether generated from

17 the synthesis gas derived from coal, from SNG, or

18 from natural gas, shall be credited against the

19 revenue requirement for this initial clean coal

20 facility;

21 (B) power purchase provisions, which shall:

22 (i) provide that the utility party to such

23 sourcing agreement shall pay the contract price

24 for electricity delivered under such sourcing

25 agreement;

26 (ii) require delivery of electricity to the

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1 regional transmission organization market of the

2 utility that is party to such sourcing agreement;

3 (iii) require the utility party to such

4 sourcing agreement to buy from the initial clean

5 coal facility in each hour an amount of energy

6 equal to all clean coal energy made available from

7 the initial clean coal facility during such hour

8 times a fraction, the numerator of which is such

9 utility's retail market sales of electricity

10 (expressed in kilowatthours sold) in the State

11 during the prior calendar month and the

12 denominator of which is the total retail market

13 sales of electricity (expressed in kilowatthours

14 sold) in the State by utilities during such prior

15 month and the sales of electricity (expressed in

16 kilowatthours sold) in the State by alternative

17 retail electric suppliers during such prior month

18 that are subject to the requirements of this

19 subsection (d) and paragraph (5) of subsection (d)

20 of Section 16-115 of the Public Utilities Act,

21 provided that the amount purchased by the utility

22 in any year will be limited by paragraph (2) of

23 this subsection (d); and

24 (iv) be considered pre-existing contracts in

25 such utility's procurement plans for eligible

26 retail customers;

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1 (C) contract for differences provisions, which

2 shall:

3 (i) require the utility party to such sourcing

4 agreement to contract with the initial clean coal

5 facility in each hour with respect to an amount of

6 energy equal to all clean coal energy made

7 available from the initial clean coal facility

8 during such hour times a fraction, the numerator

9 of which is such utility's retail market sales of

10 electricity (expressed in kilowatthours sold) in

11 the utility's service territory in the State

12 during the prior calendar month and the

13 denominator of which is the total retail market

14 sales of electricity (expressed in kilowatthours

15 sold) in the State by utilities during such prior

16 month and the sales of electricity (expressed in

17 kilowatthours sold) in the State by alternative

18 retail electric suppliers during such prior month

19 that are subject to the requirements of this

20 subsection (d) and paragraph (5) of subsection (d)

21 of Section 16-115 of the Public Utilities Act,

22 provided that the amount paid by the utility in

23 any year will be limited by paragraph (2) of this

24 subsection (d);

25 (ii) provide that the utility's payment

26 obligation in respect of the quantity of

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1 electricity determined pursuant to the preceding

2 clause (i) shall be limited to an amount equal to

3 (1) the difference between the contract price

4 determined pursuant to subparagraph (A) of

5 paragraph (3) of this subsection (d) and the

6 day-ahead price for electricity delivered to the

7 regional transmission organization market of the

8 utility that is party to such sourcing agreement

9 (or any successor delivery point at which such

10 utility's supply obligations are financially

11 settled on an hourly basis) (the "reference

12 price") on the day preceding the day on which the

13 electricity is delivered to the initial clean coal

14 facility busbar, multiplied by (2) the quantity of

15 electricity determined pursuant to the preceding

16 clause (i); and

17 (iii) not require the utility to take physical

18 delivery of the electricity produced by the

19 facility;

20 (D) general provisions, which shall:

21 (i) specify a term of no more than 30 years,

22 commencing on the commercial operation date of the

23 facility;

24 (ii) provide that utilities shall maintain

25 adequate records documenting purchases under the

26 sourcing agreements entered into to comply with

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1 this subsection (d) and shall file an accounting

2 with the load forecast that must be filed with the

3 Agency by July 15 of each year, in accordance with

4 subsection (d) of Section 16-111.5 of the Public

5 Utilities Act;

6 (iii) provide that all costs associated with

7 the initial clean coal facility will be

8 periodically reported to the Federal Energy

9 Regulatory Commission and to purchasers in

10 accordance with applicable laws governing

11 cost-based wholesale power contracts;

12 (iv) permit the Illinois Power Agency to

13 assume ownership of the initial clean coal

14 facility, without monetary consideration and

15 otherwise on reasonable terms acceptable to the

16 Agency, if the Agency so requests no less than 3

17 years prior to the end of the stated contract

18 term;

19 (v) require the owner of the initial clean

20 coal facility to provide documentation to the

21 Commission each year, starting in the facility's

22 first year of commercial operation, accurately

23 reporting the quantity of carbon emissions from

24 the facility that have been captured and

25 sequestered and report any quantities of carbon

26 released from the site or sites at which carbon

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1 emissions were sequestered in prior years, based

2 on continuous monitoring of such sites. If, in any

3 year after the first year of commercial operation,

4 the owner of the facility fails to demonstrate

5 that the initial clean coal facility captured and

6 sequestered at least 50% of the total carbon

7 emissions that the facility would otherwise emit

8 or that sequestration of emissions from prior

9 years has failed, resulting in the release of

10 carbon dioxide into the atmosphere, the owner of

11 the facility must offset excess emissions. Any

12 such carbon offsets must be permanent, additional,

13 verifiable, real, located within the State of

14 Illinois, and legally and practicably enforceable.

15 The cost of such offsets for the facility that are

16 not recoverable shall not exceed $15 million in

17 any given year. No costs of any such purchases of

18 carbon offsets may be recovered from a utility or

19 its customers. All carbon offsets purchased for

20 this purpose and any carbon emission credits

21 associated with sequestration of carbon from the

22 facility must be permanently retired. The initial

23 clean coal facility shall not forfeit its

24 designation as a clean coal facility if the

25 facility fails to fully comply with the applicable

26 carbon sequestration requirements in any given

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1 year, provided the requisite offsets are

2 purchased. However, the Attorney General, on

3 behalf of the People of the State of Illinois, may

4 specifically enforce the facility's sequestration

5 requirement and the other terms of this contract

6 provision. Compliance with the sequestration

7 requirements and offset purchase requirements

8 specified in paragraph (3) of this subsection (d)

9 shall be reviewed annually by an independent

10 expert retained by the owner of the initial clean

11 coal facility, with the advance written approval

12 of the Attorney General. The Commission may, in

13 the course of the review specified in item (vii),

14 reduce the allowable return on equity for the

15 facility if the facility willfully fails to comply

16 with the carbon capture and sequestration

17 requirements set forth in this item (v);

18 (vi) include limits on, and accordingly

19 provide for modification of, the amount the

20 utility is required to source under the sourcing

21 agreement consistent with paragraph (2) of this

22 subsection (d);

23 (vii) require Commission review: (1) to

24 determine the justness, reasonableness, and

25 prudence of the inputs to the formula referenced

26 in subparagraphs (A)(i) through (A)(iii) of

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1 paragraph (3) of this subsection (d), prior to an

2 adjustment in those inputs including, without

3 limitation, the capital structure and return on

4 equity, fuel costs, and other operations and

5 maintenance costs and (2) to approve the costs to

6 be passed through to customers under the sourcing

7 agreement by which the utility satisfies its

8 statutory obligations. Commission review shall

9 occur no less than every 3 years, regardless of

10 whether any adjustments have been proposed, and

11 shall be completed within 9 months;

12 (viii) limit the utility's obligation to such

13 amount as the utility is allowed to recover

14 through tariffs filed with the Commission,

15 provided that neither the clean coal facility nor

16 the utility waives any right to assert federal

17 pre-emption or any other argument in response to a

18 purported disallowance of recovery costs;

19 (ix) limit the utility's or alternative retail

20 electric supplier's obligation to incur any

21 liability until such time as the facility is in

22 commercial operation and generating power and

23 energy and such power and energy is being

24 delivered to the facility busbar;

25 (x) provide that the owner or owners of the

26 initial clean coal facility, which is the

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1 counterparty to such sourcing agreement, shall

2 have the right from time to time to elect whether

3 the obligations of the utility party thereto shall

4 be governed by the power purchase provisions or

5 the contract for differences provisions;

6 (xi) append documentation showing that the

7 formula rate and contract, insofar as they relate

8 to the power purchase provisions, have been

9 approved by the Federal Energy Regulatory

10 Commission pursuant to Section 205 of the Federal

11 Power Act;

12 (xii) provide that any changes to the terms of

13 the contract, insofar as such changes relate to

14 the power purchase provisions, are subject to

15 review under the public interest standard applied

16 by the Federal Energy Regulatory Commission

17 pursuant to Sections 205 and 206 of the Federal

18 Power Act; and

19 (xiii) conform with customary lender

20 requirements in power purchase agreements used as

21 the basis for financing non-utility generators.

22 (4) Effective date of sourcing agreements with the

23 initial clean coal facility. Any proposed sourcing

24 agreement with the initial clean coal facility shall not

25 become effective unless the following reports are prepared

26 and submitted and authorizations and approvals obtained:

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1 (i) Facility cost report. The owner of the initial

2 clean coal facility shall submit to the Commission,

3 the Agency, and the General Assembly a front-end

4 engineering and design study, a facility cost report,

5 method of financing (including but not limited to

6 structure and associated costs), and an operating and

7 maintenance cost quote for the facility (collectively

8 "facility cost report"), which shall be prepared in

9 accordance with the requirements of this paragraph (4)

10 of subsection (d) of this Section, and shall provide

11 the Commission and the Agency access to the work

12 papers, relied upon documents, and any other backup

13 documentation related to the facility cost report.

14 (ii) Commission report. Within 6 months following

15 receipt of the facility cost report, the Commission,

16 in consultation with the Agency, shall submit a report

17 to the General Assembly setting forth its analysis of

18 the facility cost report. Such report shall include,

19 but not be limited to, a comparison of the costs

20 associated with electricity generated by the initial

21 clean coal facility to the costs associated with

22 electricity generated by other types of generation

23 facilities, an analysis of the rate impacts on

24 residential and small business customers over the life

25 of the sourcing agreements, and an analysis of the

26 likelihood that the initial clean coal facility will

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1 commence commercial operation by and be delivering

2 power to the facility's busbar by 2016. To assist in

3 the preparation of its report, the Commission, in

4 consultation with the Agency, may hire one or more

5 experts or consultants, the costs of which shall be

6 paid for by the owner of the initial clean coal

7 facility. The Commission and Agency may begin the

8 process of selecting such experts or consultants prior

9 to receipt of the facility cost report.

10 (iii) General Assembly approval. The proposed

11 sourcing agreements shall not take effect unless,

12 based on the facility cost report and the Commission's

13 report, the General Assembly enacts authorizing

14 legislation approving (A) the projected price, stated

15 in cents per kilowatthour, to be charged for

16 electricity generated by the initial clean coal

17 facility, (B) the projected impact on residential and

18 small business customers' bills over the life of the

19 sourcing agreements, and (C) the maximum allowable

20 return on equity for the project; and

21 (iv) Commission review. If the General Assembly

22 enacts authorizing legislation pursuant to

23 subparagraph (iii) approving a sourcing agreement, the

24 Commission shall, within 90 days of such enactment,

25 complete a review of such sourcing agreement. During

26 such time period, the Commission shall implement any

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1 directive of the General Assembly, resolve any

2 disputes between the parties to the sourcing agreement

3 concerning the terms of such agreement, approve the

4 form of such agreement, and issue an order finding

5 that the sourcing agreement is prudent and reasonable.

6 The facility cost report shall be prepared as follows:

7 (A) The facility cost report shall be prepared by

8 duly licensed engineering and construction firms

9 detailing the estimated capital costs payable to one

10 or more contractors or suppliers for the engineering,

11 procurement and construction of the components

12 comprising the initial clean coal facility and the

13 estimated costs of operation and maintenance of the

14 facility. The facility cost report shall include:

15 (i) an estimate of the capital cost of the

16 core plant based on one or more front end

17 engineering and design studies for the

18 gasification island and related facilities. The

19 core plant shall include all civil, structural,

20 mechanical, electrical, control, and safety

21 systems.

22 (ii) an estimate of the capital cost of the

23 balance of the plant, including any capital costs

24 associated with sequestration of carbon dioxide

25 emissions and all interconnects and interfaces

26 required to operate the facility, such as

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1 transmission of electricity, construction or

2 backfeed power supply, pipelines to transport

3 substitute natural gas or carbon dioxide, potable

4 water supply, natural gas supply, water supply,

5 water discharge, landfill, access roads, and coal

6 delivery.

7 The quoted construction costs shall be expressed

8 in nominal dollars as of the date that the quote is

9 prepared and shall include capitalized financing costs

10 during construction, taxes, insurance, and other

11 owner's costs, and an assumed escalation in materials

12 and labor beyond the date as of which the construction

13 cost quote is expressed.

14 (B) The front end engineering and design study for

15 the gasification island and the cost study for the

16 balance of plant shall include sufficient design work

17 to permit quantification of major categories of

18 materials, commodities and labor hours, and receipt of

19 quotes from vendors of major equipment required to

20 construct and operate the clean coal facility.

21 (C) The facility cost report shall also include an

22 operating and maintenance cost quote that will provide

23 the estimated cost of delivered fuel, personnel,

24 maintenance contracts, chemicals, catalysts,

25 consumables, spares, and other fixed and variable

26 operations and maintenance costs. The delivered fuel

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1 cost estimate will be provided by a recognized third

2 party expert or experts in the fuel and transportation

3 industries. The balance of the operating and

4 maintenance cost quote, excluding delivered fuel

5 costs, will be developed based on the inputs provided

6 by duly licensed engineering and construction firms

7 performing the construction cost quote, potential

8 vendors under long-term service agreements and plant

9 operating agreements, or recognized third party plant

10 operator or operators.

11 The operating and maintenance cost quote

12 (including the cost of the front end engineering and

13 design study) shall be expressed in nominal dollars as

14 of the date that the quote is prepared and shall

15 include taxes, insurance, and other owner's costs, and

16 an assumed escalation in materials and labor beyond

17 the date as of which the operating and maintenance

18 cost quote is expressed.

19 (D) The facility cost report shall also include an

20 analysis of the initial clean coal facility's ability

21 to deliver power and energy into the applicable

22 regional transmission organization markets and an

23 analysis of the expected capacity factor for the

24 initial clean coal facility.

25 (E) Amounts paid to third parties unrelated to the

26 owner or owners of the initial clean coal facility to

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1 prepare the core plant construction cost quote,

2 including the front end engineering and design study,

3 and the operating and maintenance cost quote will be

4 reimbursed through Coal Development Bonds.

5 (5) Re-powering and retrofitting coal-fired power

6 plants previously owned by Illinois utilities to qualify

7 as clean coal facilities. During the 2009 procurement

8 planning process and thereafter, the Agency and the

9 Commission shall consider sourcing agreements covering

10 electricity generated by power plants that were previously

11 owned by Illinois utilities and that have been or will be

12 converted into clean coal facilities, as defined by

13 Section 1-10 of this Act. Pursuant to such procurement

14 planning process, the owners of such facilities may

15 propose to the Agency sourcing agreements with utilities

16 and alternative retail electric suppliers required to

17 comply with subsection (d) of this Section and item (5) of

18 subsection (d) of Section 16-115 of the Public Utilities

19 Act, covering electricity generated by such facilities. In

20 the case of sourcing agreements that are power purchase

21 agreements, the contract price for electricity sales shall

22 be established on a cost of service basis. In the case of

23 sourcing agreements that are contracts for differences,

24 the contract price from which the reference price is

25 subtracted shall be established on a cost of service

26 basis. The Agency and the Commission may approve any such

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1 utility sourcing agreements that do not exceed cost-based

2 benchmarks developed by the procurement administrator, in

3 consultation with the Commission staff, Agency staff and

4 the procurement monitor, subject to Commission review and

5 approval. The Commission shall have authority to inspect

6 all books and records associated with these clean coal

7 facilities during the term of any such contract.

8 (6) Costs incurred under this subsection (d) or

9 pursuant to a contract entered into under this subsection

10 (d) shall be deemed prudently incurred and reasonable in

11 amount and the electric utility shall be entitled to full

12 cost recovery pursuant to the tariffs filed with the

13 Commission.

14 (d-5) Zero emission standard.

15 (1) Beginning with the delivery year commencing on

16 June 1, 2017, the Agency shall, for electric utilities

17 that serve at least 100,000 retail customers in this

18 State, procure contracts with zero emission facilities

19 that are reasonably capable of generating cost-effective

20 zero emission credits in an amount approximately equal to

21 16% of the actual amount of electricity delivered by each

22 electric utility to retail customers in the State during

23 calendar year 2014. For an electric utility serving fewer

24 than 100,000 retail customers in this State that

25 requested, under Section 16-111.5 of the Public Utilities

26 Act, that the Agency procure power and energy for all or a

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1 portion of the utility's Illinois load for the delivery

2 year commencing June 1, 2016, the Agency shall procure

3 contracts with zero emission facilities that are

4 reasonably capable of generating cost-effective zero

5 emission credits in an amount approximately equal to 16%

6 of the portion of power and energy to be procured by the

7 Agency for the utility. The duration of the contracts

8 procured under this subsection (d-5) shall be for a term

9 of 10 years ending May 31, 2027. The quantity of zero

10 emission credits to be procured under the contracts shall

11 be all of the zero emission credits generated by the zero

12 emission facility in each delivery year; however, if the

13 zero emission facility is owned by more than one entity,

14 then the quantity of zero emission credits to be procured

15 under the contracts shall be the amount of zero emission

16 credits that are generated from the portion of the zero

17 emission facility that is owned by the winning supplier.

18 The 16% value identified in this paragraph (1) is the

19 average of the percentage targets in subparagraph (B) of

20 paragraph (1) of subsection (c) of this Section for the 5

21 delivery years beginning June 1, 2017.

22 The procurement process shall be subject to the

23 following provisions:

24 (A) Those zero emission facilities that intend to

25 participate in the procurement shall submit to the

26 Agency the following eligibility information for each

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1 zero emission facility on or before the date

2 established by the Agency:

3 (i) the in-service date and remaining useful

4 life of the zero emission facility;

5 (ii) the amount of power generated annually

6 for each of the years 2005 through 2015, and the

7 projected zero emission credits to be generated

8 over the remaining useful life of the zero

9 emission facility, which shall be used to

10 determine the capability of each facility;

11 (iii) the annual zero emission facility cost

12 projections, expressed on a per megawatthour

13 basis, over the next 6 delivery years, which shall

14 include the following: operation and maintenance

15 expenses; fully allocated overhead costs, which

16 shall be allocated using the methodology developed

17 by the Institute for Nuclear Power Operations;

18 fuel expenditures; non-fuel capital expenditures;

19 spent fuel expenditures; a return on working

20 capital; the cost of operational and market risks

21 that could be avoided by ceasing operation; and

22 any other costs necessary for continued

23 operations, provided that "necessary" means, for

24 purposes of this item (iii), that the costs could

25 reasonably be avoided only by ceasing operations

26 of the zero emission facility; and

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1 (iv) a commitment to continue operating, for

2 the duration of the contract or contracts executed

3 under the procurement held under this subsection

4 (d-5), the zero emission facility that produces

5 the zero emission credits to be procured in the

6 procurement.

7 The information described in item (iii) of this

8 subparagraph (A) may be submitted on a confidential

9 basis and shall be treated and maintained by the

10 Agency, the procurement administrator, and the

11 Commission as confidential and proprietary and exempt

12 from disclosure under subparagraphs (a) and (g) of

13 paragraph (1) of Section 7 of the Freedom of

14 Information Act. The Office of Attorney General shall

15 have access to, and maintain the confidentiality of,

16 such information pursuant to Section 6.5 of the

17 Attorney General Act.

18 (B) The price for each zero emission credit

19 procured under this subsection (d-5) for each delivery

20 year shall be in an amount that equals the Social Cost

21 of Carbon, expressed on a price per megawatthour

22 basis. However, to ensure that the procurement remains

23 affordable to retail customers in this State if

24 electricity prices increase, the price in an

25 applicable delivery year shall be reduced below the

26 Social Cost of Carbon by the amount ("Price

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1 Adjustment") by which the market price index for the

2 applicable delivery year exceeds the baseline market

3 price index for the consecutive 12-month period ending

4 May 31, 2016. If the Price Adjustment is greater than

5 or equal to the Social Cost of Carbon in an applicable

6 delivery year, then no payments shall be due in that

7 delivery year. The components of this calculation are

8 defined as follows:

9 (i) Social Cost of Carbon: The Social Cost of

10 Carbon is $16.50 per megawatthour, which is based

11 on the U.S. Interagency Working Group on Social

12 Cost of Carbon's price in the August 2016

13 Technical Update using a 3% discount rate,

14 adjusted for inflation for each year of the

15 program. Beginning with the delivery year

16 commencing June 1, 2023, the price per

17 megawatthour shall increase by $1 per

18 megawatthour, and continue to increase by an

19 additional $1 per megawatthour each delivery year

20 thereafter.

21 (ii) Baseline market price index: The baseline

22 market price index for the consecutive 12-month

23 period ending May 31, 2016 is $31.40 per

24 megawatthour, which is based on the sum of (aa)

25 the average day-ahead energy price across all

26 hours of such 12-month period at the PJM

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1 Interconnection LLC Northern Illinois Hub, (bb)

2 50% multiplied by the Base Residual Auction, or

3 its successor, capacity price for the rest of the

4 RTO zone group determined by PJM Interconnection

5 LLC, divided by 24 hours per day, and (cc) 50%

6 multiplied by the Planning Resource Auction, or

7 its successor, capacity price for Zone 4

8 determined by the Midcontinent Independent System

9 Operator, Inc., divided by 24 hours per day.

10 (iii) Market price index: The market price

11 index for a delivery year shall be the sum of

12 projected energy prices and projected capacity

13 prices determined as follows:

14 (aa) Projected energy prices: the

15 projected energy prices for the applicable

16 delivery year shall be calculated once for the

17 year using the forward market price for the

18 PJM Interconnection, LLC Northern Illinois

19 Hub. The forward market price shall be

20 calculated as follows: the energy forward

21 prices for each month of the applicable

22 delivery year averaged for each trade date

23 during the calendar year immediately preceding

24 that delivery year to produce a single energy

25 forward price for the delivery year. The

26 forward market price calculation shall use

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1 data published by the Intercontinental

2 Exchange, or its successor.

3 (bb) Projected capacity prices:

4 (I) For the delivery years commencing

5 June 1, 2017, June 1, 2018, and June 1,

6 2019, the projected capacity price shall

7 be equal to the sum of (1) 50% multiplied

8 by the Base Residual Auction, or its

9 successor, price for the rest of the RTO

10 zone group as determined by PJM

11 Interconnection LLC, divided by 24 hours

12 per day and, (2) 50% multiplied by the

13 resource auction price determined in the

14 resource auction administered by the

15 Midcontinent Independent System Operator,

16 Inc., in which the largest percentage of

17 load cleared for Local Resource Zone 4,

18 divided by 24 hours per day, and where

19 such price is determined by the

20 Midcontinent Independent System Operator,

21 Inc.

22 (II) For the delivery year commencing

23 June 1, 2020, and each year thereafter,

24 the projected capacity price shall be

25 equal to the sum of (1) 50% multiplied by

26 the Base Residual Auction, or its

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1 successor, price for the ComEd zone as

2 determined by PJM Interconnection LLC,

3 divided by 24 hours per day, and (2) 50%

4 multiplied by the resource auction price

5 determined in the resource auction

6 administered by the Midcontinent

7 Independent System Operator, Inc., in

8 which the largest percentage of load

9 cleared for Local Resource Zone 4, divided

10 by 24 hours per day, and where such price

11 is determined by the Midcontinent

12 Independent System Operator, Inc.

13 For purposes of this subsection (d-5):

14 "Rest of the RTO" and "ComEd Zone" shall have

15 the meaning ascribed to them by PJM

16 Interconnection, LLC.

17 "RTO" means regional transmission

18 organization.

19 (C) No later than 45 days after June 1, 2017 (the

20 effective date of Public Act 99-906), the Agency shall

21 publish its proposed zero emission standard

22 procurement plan. The plan shall be consistent with

23 the provisions of this paragraph (1) and shall provide

24 that winning bids shall be selected based on public

25 interest criteria that include, but are not limited

26 to, minimizing carbon dioxide emissions that result

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1 from electricity consumed in Illinois and minimizing

2 sulfur dioxide, nitrogen oxide, and particulate matter

3 emissions that adversely affect the citizens of this

4 State. In particular, the selection of winning bids

5 shall take into account the incremental environmental

6 benefits resulting from the procurement, such as any

7 existing environmental benefits that are preserved by

8 the procurements held under Public Act 99-906 and

9 would cease to exist if the procurements were not

10 held, including the preservation of zero emission

11 facilities. The plan shall also describe in detail how

12 each public interest factor shall be considered and

13 weighted in the bid selection process to ensure that

14 the public interest criteria are applied to the

15 procurement and given full effect.

16 For purposes of developing the plan, the Agency

17 shall consider any reports issued by a State agency,

18 board, or commission under House Resolution 1146 of

19 the 98th General Assembly and paragraph (4) of

20 subsection (d) of this Section, as well as publicly

21 available analyses and studies performed by or for

22 regional transmission organizations that serve the

23 State and their independent market monitors.

24 Upon publishing of the zero emission standard

25 procurement plan, copies of the plan shall be posted

26 and made publicly available on the Agency's website.

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1 All interested parties shall have 10 days following

2 the date of posting to provide comment to the Agency on

3 the plan. All comments shall be posted to the Agency's

4 website. Following the end of the comment period, but

5 no more than 60 days later than June 1, 2017 (the

6 effective date of Public Act 99-906), the Agency shall

7 revise the plan as necessary based on the comments

8 received and file its zero emission standard

9 procurement plan with the Commission.

10 If the Commission determines that the plan will

11 result in the procurement of cost-effective zero

12 emission credits, then the Commission shall, after

13 notice and hearing, but no later than 45 days after the

14 Agency filed the plan, approve the plan or approve

15 with modification. For purposes of this subsection

16 (d-5), "cost effective" means the projected costs of

17 procuring zero emission credits from zero emission

18 facilities do not cause the limit stated in paragraph

19 (2) of this subsection to be exceeded.

20 (C-5) As part of the Commission's review and

21 acceptance or rejection of the procurement results,

22 the Commission shall, in its public notice of

23 successful bidders:

24 (i) identify how the winning bids satisfy the

25 public interest criteria described in subparagraph

26 (C) of this paragraph (1) of minimizing carbon

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1 dioxide emissions that result from electricity

2 consumed in Illinois and minimizing sulfur

3 dioxide, nitrogen oxide, and particulate matter

4 emissions that adversely affect the citizens of

5 this State;

6 (ii) specifically address how the selection of

7 winning bids takes into account the incremental

8 environmental benefits resulting from the

9 procurement, including any existing environmental

10 benefits that are preserved by the procurements

11 held under Public Act 99-906 and would have ceased

12 to exist if the procurements had not been held,

13 such as the preservation of zero emission

14 facilities;

15 (iii) quantify the environmental benefit of

16 preserving the resources identified in item (ii)

17 of this subparagraph (C-5), including the

18 following:

19 (aa) the value of avoided greenhouse gas

20 emissions measured as the product of the zero

21 emission facilities' output over the contract

22 term multiplied by the U.S. Environmental

23 Protection Agency eGrid subregion carbon

24 dioxide emission rate and the U.S. Interagency

25 Working Group on Social Cost of Carbon's price

26 in the August 2016 Technical Update using a 3%

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1 discount rate, adjusted for inflation for each

2 delivery year; and

3 (bb) the costs of replacement with other

4 zero carbon dioxide resources, including wind

5 and photovoltaic, based upon the simple

6 average of the following:

7 (I) the price, or if there is more

8 than one price, the average of the prices,

9 paid for renewable energy credits from new

10 utility-scale wind projects in the

11 procurement events specified in item (i)

12 of subparagraph (G) of paragraph (1) of

13 subsection (c) of this Section; and

14 (II) the price, or if there is more

15 than one price, the average of the prices,

16 paid for renewable energy credits from new

17 utility-scale solar projects and

18 brownfield site photovoltaic projects in

19 the procurement events specified in item

20 (ii) of subparagraph (G) of paragraph (1)

21 of subsection (c) of this Section and,

22 after January 1, 2015, renewable energy

23 credits from photovoltaic distributed

24 generation projects in procurement events

25 held under subsection (c) of this Section.

26 Each utility shall enter into binding contractual

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1 arrangements with the winning suppliers.

2 The procurement described in this subsection

3 (d-5), including, but not limited to, the execution of

4 all contracts procured, shall be completed no later

5 than May 10, 2017. Based on the effective date of

6 Public Act 99-906, the Agency and Commission may, as

7 appropriate, modify the various dates and timelines

8 under this subparagraph and subparagraphs (C) and (D)

9 of this paragraph (1). The procurement and plan

10 approval processes required by this subsection (d-5)

11 shall be conducted in conjunction with the procurement

12 and plan approval processes required by subsection (c)

13 of this Section and Section 16-111.5 of the Public

14 Utilities Act, to the extent practicable.

15 Notwithstanding whether a procurement event is

16 conducted under Section 16-111.5 of the Public

17 Utilities Act, the Agency shall immediately initiate a

18 procurement process on June 1, 2017 (the effective

19 date of Public Act 99-906).

20 (D) Following the procurement event described in

21 this paragraph (1) and consistent with subparagraph

22 (B) of this paragraph (1), the Agency shall calculate

23 the payments to be made under each contract for the

24 next delivery year based on the market price index for

25 that delivery year. The Agency shall publish the

26 payment calculations no later than May 25, 2017 and

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1 every May 25 thereafter.

2 (E) Notwithstanding the requirements of this

3 subsection (d-5), the contracts executed under this

4 subsection (d-5) shall provide that the zero emission

5 facility may, as applicable, suspend or terminate

6 performance under the contracts in the following

7 instances:

8 (i) A zero emission facility shall be excused

9 from its performance under the contract for any

10 cause beyond the control of the resource,

11 including, but not restricted to, acts of God,

12 flood, drought, earthquake, storm, fire,

13 lightning, epidemic, war, riot, civil disturbance

14 or disobedience, labor dispute, labor or material

15 shortage, sabotage, acts of public enemy,

16 explosions, orders, regulations or restrictions

17 imposed by governmental, military, or lawfully

18 established civilian authorities, which, in any of

19 the foregoing cases, by exercise of commercially

20 reasonable efforts the zero emission facility

21 could not reasonably have been expected to avoid,

22 and which, by the exercise of commercially

23 reasonable efforts, it has been unable to

24 overcome. In such event, the zero emission

25 facility shall be excused from performance for the

26 duration of the event, including, but not limited

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1 to, delivery of zero emission credits, and no

2 payment shall be due to the zero emission facility

3 during the duration of the event.

4 (ii) A zero emission facility shall be

5 permitted to terminate the contract if legislation

6 is enacted into law by the General Assembly that

7 imposes or authorizes a new tax, special

8 assessment, or fee on the generation of

9 electricity, the ownership or leasehold of a

10 generating unit, or the privilege or occupation of

11 such generation, ownership, or leasehold of

12 generation units by a zero emission facility.

13 However, the provisions of this item (ii) do not

14 apply to any generally applicable tax, special

15 assessment or fee, or requirements imposed by

16 federal law.

17 (iii) A zero emission facility shall be

18 permitted to terminate the contract in the event

19 that the resource requires capital expenditures in

20 excess of $40,000,000 that were neither known nor

21 reasonably foreseeable at the time it executed the

22 contract and that a prudent owner or operator of

23 such resource would not undertake.

24 (iv) A zero emission facility shall be

25 permitted to terminate the contract in the event

26 the Nuclear Regulatory Commission terminates the

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1 resource's license.

2 (F) If the zero emission facility elects to

3 terminate a contract under subparagraph (E) of this

4 paragraph (1), then the Commission shall reopen the

5 docket in which the Commission approved the zero

6 emission standard procurement plan under subparagraph

7 (C) of this paragraph (1) and, after notice and

8 hearing, enter an order acknowledging the contract

9 termination election if such termination is consistent

10 with the provisions of this subsection (d-5).

11 (2) For purposes of this subsection (d-5), the amount

12 paid per kilowatthour means the total amount paid for

13 electric service expressed on a per kilowatthour basis.

14 For purposes of this subsection (d-5), the total amount

15 paid for electric service includes, without limitation,

16 amounts paid for supply, transmission, distribution,

17 surcharges, and add-on taxes.

18 Notwithstanding the requirements of this subsection

19 (d-5), the contracts executed under this subsection (d-5)

20 shall provide that the total of zero emission credits

21 procured under a procurement plan shall be subject to the

22 limitations of this paragraph (2). For each delivery year,

23 the contractual volume receiving payments in such year

24 shall be reduced for all retail customers based on the

25 amount necessary to limit the net increase that delivery

26 year to the costs of those credits included in the amounts

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1 paid by eligible retail customers in connection with

2 electric service to no more than 1.65% of the amount paid

3 per kilowatthour by eligible retail customers during the

4 year ending May 31, 2009. The result of this computation

5 shall apply to and reduce the procurement for all retail

6 customers, and all those customers shall pay the same

7 single, uniform cents per kilowatthour charge under

8 subsection (k) of Section 16-108 of the Public Utilities

9 Act. To arrive at a maximum dollar amount of zero emission

10 credits to be paid for the particular delivery year, the

11 resulting per kilowatthour amount shall be applied to the

12 actual amount of kilowatthours of electricity delivered by

13 the electric utility in the delivery year immediately

14 prior to the procurement, to all retail customers in its

15 service territory. Unpaid contractual volume for any

16 delivery year shall be paid in any subsequent delivery

17 year in which such payments can be made without exceeding

18 the amount specified in this paragraph (2). The

19 calculations required by this paragraph (2) shall be made

20 only once for each procurement plan year. Once the

21 determination as to the amount of zero emission credits to

22 be paid is made based on the calculations set forth in this

23 paragraph (2), no subsequent rate impact determinations

24 shall be made and no adjustments to those contract amounts

25 shall be allowed. All costs incurred under those contracts

26 and in implementing this subsection (d-5) shall be

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1 recovered by the electric utility as provided in this

2 Section.

3 No later than June 30, 2019, the Commission shall

4 review the limitation on the amount of zero emission

5 credits procured under this subsection (d-5) and report to

6 the General Assembly its findings as to whether that

7 limitation unduly constrains the procurement of

8 cost-effective zero emission credits.

9 (3) Six years after the execution of a contract under

10 this subsection (d-5), the Agency shall determine whether

11 the actual zero emission credit payments received by the

12 supplier over the 6-year period exceed the Average ZEC

13 Payment. In addition, at the end of the term of a contract

14 executed under this subsection (d-5), or at the time, if

15 any, a zero emission facility's contract is terminated

16 under subparagraph (E) of paragraph (1) of this subsection

17 (d-5), then the Agency shall determine whether the actual

18 zero emission credit payments received by the supplier

19 over the term of the contract exceed the Average ZEC

20 Payment, after taking into account any amounts previously

21 credited back to the utility under this paragraph (3). If

22 the Agency determines that the actual zero emission credit

23 payments received by the supplier over the relevant period

24 exceed the Average ZEC Payment, then the supplier shall

25 credit the difference back to the utility. The amount of

26 the credit shall be remitted to the applicable electric

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1 utility no later than 120 days after the Agency's

2 determination, which the utility shall reflect as a credit

3 on its retail customer bills as soon as practicable;

4 however, the credit remitted to the utility shall not

5 exceed the total amount of payments received by the

6 facility under its contract.

7 For purposes of this Section, the Average ZEC Payment

8 shall be calculated by multiplying the quantity of zero

9 emission credits delivered under the contract times the

10 average contract price. The average contract price shall

11 be determined by subtracting the amount calculated under

12 subparagraph (B) of this paragraph (3) from the amount

13 calculated under subparagraph (A) of this paragraph (3),

14 as follows:

15 (A) The average of the Social Cost of Carbon, as

16 defined in subparagraph (B) of paragraph (1) of this

17 subsection (d-5), during the term of the contract.

18 (B) The average of the market price indices, as

19 defined in subparagraph (B) of paragraph (1) of this

20 subsection (d-5), during the term of the contract,

21 minus the baseline market price index, as defined in

22 subparagraph (B) of paragraph (1) of this subsection

23 (d-5).

24 If the subtraction yields a negative number, then the

25 Average ZEC Payment shall be zero.

26 (4) Cost-effective zero emission credits procured from

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1 zero emission facilities shall satisfy the applicable

2 definitions set forth in Section 1-10 of this Act.

3 (5) The electric utility shall retire all zero

4 emission credits used to comply with the requirements of

5 this subsection (d-5).

6 (6) Electric utilities shall be entitled to recover

7 all of the costs associated with the procurement of zero

8 emission credits through an automatic adjustment clause

9 tariff in accordance with subsection (k) and (m) of

10 Section 16-108 of the Public Utilities Act, and the

11 contracts executed under this subsection (d-5) shall

12 provide that the utilities' payment obligations under such

13 contracts shall be reduced if an adjustment is required

14 under subsection (m) of Section 16-108 of the Public

15 Utilities Act.

16 (7) This subsection (d-5) shall become inoperative on

17 January 1, 2028.

18 (d-10) Nuclear Plant Assistance; carbon mitigation

19 credits.

20 (1) The General Assembly finds:

21 (A) The health, welfare, and prosperity of all

22 Illinois citizens require that the State of Illinois act

23 to avoid and not increase carbon emissions from electric

24 generation sources while continuing to ensure affordable,

25 stable, and reliable electricity to all citizens.

26 (B) Absent immediate action by the State to preserve

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1 existing carbon-free energy resources, those resources may

2 retire, and the electric generation needs of Illinois'

3 retail customers may be met instead by facilities that

4 emit significant amounts of carbon pollution and other

5 harmful air pollutants at a high social and economic cost

6 until Illinois is able to develop other forms of clean

7 energy.

8 (C) The General Assembly finds that nuclear power

9 generation is necessary for the State's transition to 100%

10 clean energy, and ensuring continued operation of nuclear

11 plants advances environmental and public health interests

12 through providing carbon-free electricity while reducing

13 the air pollution profile of the Illinois energy

14 generation fleet.

15 (D) The clean energy attributes of nuclear generation

16 facilities support the State in its efforts to achieve

17 100% clean energy.

18 (E) The State currently invests in various forms of

19 clean energy, including, but not limited to, renewable

20 energy, energy efficiency, and low-emission vehicles,

21 among others.

22 (F) The Environmental Protection Agency commissioned

23 an independent audit which provided a detailed assessment

24 of the financial condition of the Illinois nuclear fleet

25 to evaluate its financial viability and whether the

26 environmental benefits of such resources were at risk. The

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1 report identified the risk of losing the environmental

2 benefits of several specific nuclear units. The report

3 also identified that the LaSalle County Generating Station

4 will continue to operate through 2026 and therefore is not

5 eligible to participate in the carbon mitigation credit

6 program.

7 (G) Nuclear plants provide carbon-free energy, which

8 helps to avoid many health-related negative impacts for

9 Illinois residents.

10 (H) The procurement of carbon mitigation credits

11 representing the environmental benefits of carbon-free

12 generation will further the State's efforts at achieving

13 100% clean energy and decarbonizing the electricity sector

14 in a safe, reliable, and affordable manner. Further, the

15 procurement of carbon emission credits will enhance the

16 health and welfare of Illinois residents through decreased

17 reliance on more highly polluting generation.

18 (I) The General Assembly therefore finds it necessary

19 to establish carbon mitigation credits to ensure decreased

20 reliance on more carbon-intensive energy resources, for

21 transitioning to a fully decarbonized electricity sector,

22 and to help ensure health and welfare of the State's

23 residents.

24 (2) As used in this subsection:

25 "Baseline costs" means costs used to establish a customer

26 protection cap that have been evaluated through an independent

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1 audit of a carbon-free energy resource conducted by the

2 Environmental Protection Agency that evaluated projected

3 annual costs for operation and maintenance expenses; fully

4 allocated overhead costs, which shall be allocated using the

5 methodology developed by the Institute for Nuclear Power

6 Operations; fuel expenditures; nonfuel capital expenditures;

7 spent fuel expenditures; a return on working capital; the cost

8 of operational and market risks that could be avoided by

9 ceasing operation; and any other costs necessary for continued

10 operations, provided that "necessary" means, for purposes of

11 this definition, that the costs could reasonably be avoided

12 only by ceasing operations of the carbon-free energy resource.

13 "Carbon mitigation credit" means a tradable credit that

14 represents the carbon emission reduction attributes of one

15 megawatt-hour of energy produced from a carbon-free energy

16 resource.

17 "Carbon-free energy resource" means a generation facility

18 that: (1) is fueled by nuclear power; and (2) is

19 interconnected to PJM Interconnection, LLC.

20 (3) Procurement.

21 (A) Beginning with the delivery year commencing on

22 June 1, 2022, the Agency shall, for electric utilities

23 serving at least 3,000,000 retail customers in the State,

24 seek to procure contracts for no more than approximately

25 54,500,000 cost-effective carbon mitigation credits from

26 carbon-free energy resources because such credits are

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1 necessary to support current levels of carbon-free energy

2 generation and ensure the State meets its carbon dioxide

3 emissions reduction goals. The Agency shall not make a

4 partial award of a contract for carbon mitigation credits

5 covering a fractional amount of a carbon-free energy

6 resource's projected output.

7 (B) Each carbon-free energy resource that intends to

8 participate in a procurement shall be required to submit

9 to the Agency the following information for the resource

10 on or before the date established by the Agency:

11 (i) the in-service date and remaining useful life

12 of the carbon-free energy resource;

13 (ii) the amount of power generated annually for

14 each of the past 10 years, which shall be used to

15 determine the capability of each facility;

16 (iii) a commitment to be reflected in any contract

17 entered into pursuant to this subsection (d-10) to

18 continue operating the carbon-free energy resource at

19 a capacity factor of at least 88% annually on average

20 for the duration of the contract or contracts executed

21 under the procurement held under this subsection

22 (d-10), except in an instance described in

23 subparagraph (E) of paragraph (1) of subsection (d-5)

24 of this Section or made impracticable as a result of

25 compliance with law or regulation;

26 (iv) financial need and the risk of loss of the

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1 environmental benefits of such resource, which shall

2 include the following information:

3 (I) the carbon-free energy resource's cost

4 projections, expressed on a per megawatt-hour

5 basis, over the next 5 delivery years, which shall

6 include the following: operation and maintenance

7 expenses; fully allocated overhead costs, which

8 shall be allocated using the methodology developed

9 by the Institute for Nuclear Power Operations;

10 fuel expenditures; nonfuel capital expenditures;

11 spent fuel expenditures; a return on working

12 capital; the cost of operational and market risks

13 that could be avoided by ceasing operation; and

14 any other costs necessary for continued

15 operations, provided that "necessary" means, for

16 purposes of this subitem (I), that the costs could

17 reasonably be avoided only by ceasing operations

18 of the carbon-free energy resource; and

19 (II) the carbon-free energy resource's revenue

20 projections, including energy, capacity, ancillary

21 services, any other direct State support, known or

22 anticipated federal attribute credits, known or

23 anticipated tax credits, and any other direct

24 federal support.

25 The information described in this subparagraph (B) may

26 be submitted on a confidential basis and shall be treated

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1 and maintained by the Agency, the procurement

2 administrator, and the Commission as confidential and

3 proprietary and exempt from disclosure under subparagraphs

4 (a) and (g) of paragraph (1) of Section 7 of the Freedom of

5 Information Act. The Office of the Attorney General shall

6 have access to, and maintain the confidentiality of, such

7 information pursuant to Section 6.5 of the Attorney

8 General Act.

9 (C) The Agency shall solicit bids for the contracts

10 described in this subsection (d-10) from carbon-free

11 energy resources that have satisfied the requirements of

12 subparagraph (B) of this paragraph (3). The contracts

13 procured pursuant to a procurement event shall reflect,

14 and be subject to, the following terms, requirements, and

15 limitations:

16 (i) Contracts are for delivery of carbon

17 mitigation credits, and are not energy or capacity

18 sales contracts requiring physical delivery. Pursuant

19 to item (iii), contract payments shall fully deduct

20 the value of any monetized federal production tax

21 credits, credits issued pursuant to a federal clean

22 energy standard, and other federal credits if

23 applicable.

24 (ii) Contracts for carbon mitigation credits shall

25 commence with the delivery year beginning on June 1,

26 2022 and shall be for a term of 5 delivery years

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1 concluding on May 31, 2027.

2 (iii) The price per carbon mitigation credit to be

3 paid under a contract for a given delivery year shall

4 be equal to an accepted bid price less the sum of:

5 (I) one of the following energy price indices,

6 selected by the bidder at the time of the bid for

7 the term of the contract:

8 (aa) the weighted-average hourly day-ahead

9 price for the applicable delivery year at the

10 busbar of all resources procured pursuant to

11 this subsection (d-10), weighted by actual

12 production from the resources; or

13 (bb) the projected energy price for the

14 PJM Interconnection, LLC Northern Illinois Hub

15 for the applicable delivery year determined

16 according to subitem (aa) of item (iii) of

17 subparagraph (B) of paragraph (1) of

18 subsection (d-5).

19 (II) the Base Residual Auction Capacity Price

20 for the ComEd zone as determined by PJM

21 Interconnection, LLC, divided by 24 hours per day,

22 for the applicable delivery year for the first 3

23 delivery years, and then any subsequent delivery

24 years unless the PJM Interconnection, LLC applies

25 the Minimum Offer Price Rule to participating

26 carbon-free energy resources because they supply

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1 carbon mitigation credits pursuant to this Section

2 at which time, upon notice by the carbon-free

3 energy resource to the Commission and subject to

4 the Commission's confirmation, the value under

5 this subitem shall be zero, as further described

6 in the carbon mitigation credit procurement plan;

7 and

8 (III) any value of monetized federal tax

9 credits, direct payments, or similar subsidy

10 provided to the carbon-free energy resource from

11 any unit of government that is not already

12 reflected in energy prices.

13 If the price-per-megawatt-hour calculation

14 performed under item (iii) of this subparagraph (C)

15 for a given delivery year results in a net positive

16 value, then the electric utility counterparty to the

17 contract shall multiply such net value by the

18 applicable contract quantity and remit the amount to

19 the supplier.

20 To protect retail customers from retail rate

21 impacts that may arise upon the initiation of carbon

22 policy changes, if the price-per-megawatt-hour

23 calculation performed under item (iii) of this

24 subparagraph (C) for a given delivery year results in

25 a net negative value, then the supplier counterparty

26 to the contract shall multiply such net value by the

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1 applicable contract quantity and remit such amount to

2 the electric utility counterparty. The electric

3 utility shall reflect such amounts remitted by

4 suppliers as a credit on its retail customer bills as

5 soon as practicable.

6 (iv) To ensure that retail customers in Northern

7 Illinois do not pay more for carbon mitigation credits

8 than the value such credits provide, and

9 notwithstanding the provisions of this subsection

10 (d-10), the Agency shall not accept bids for contracts

11 that exceed a customer protection cap equal to the

12 baseline costs of carbon-free energy resources.

13 The baseline costs for the applicable year shall

14 be the following:

15 (I) For the delivery year beginning June 1,

16 2022, the baseline costs shall be an amount equal

17 to $30.30 per megawatt-hour.

18 (II) For the delivery year beginning June 1,

19 2023, the baseline costs shall be an amount equal

20 to $32.50 per megawatt-hour.

21 (III) For the delivery year beginning June 1,

22 2024, the baseline costs shall be an amount equal

23 to $33.43 per megawatt-hour.

24 (IV) For the delivery year beginning June 1,

25 2025, the baseline costs shall be an amount equal

26 to $33.50 per megawatt-hour.

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1 (V) For the delivery year beginning June 1,

2 2026, the baseline costs shall be an amount equal

3 to $34.50 per megawatt-hour.

4 An Environmental Protection Agency consultant

5 forecast, included in a report issued April 14, 2021,

6 projects that a carbon-free energy resource has the

7 opportunity to earn on average approximately $30.28

8 per megawatt-hour, for the sale of energy and capacity

9 during the time period between 2022 and 2027.

10 Therefore, the sale of carbon mitigation credits

11 provides the opportunity to receive an additional

12 amount per megawatt-hour in addition to the projected

13 prices for energy and capacity.

14 Although actual energy and capacity prices may

15 vary from year-to-year, the General Assembly finds

16 that this customer protection cap will help ensure

17 that the cost of carbon mitigation credits will be

18 less than its value, based upon the social cost of

19 carbon identified in the Technical Support Document

20 issued in February 2021 by the U.S. Interagency

21 Working Group on Social Cost of Greenhouse Gases and

22 the PJM Interconnection, LLC carbon dioxide marginal

23 emission rate for 2020, and that a carbon-free energy

24 resource receiving payment for carbon mitigation

25 credits receives no more than necessary to keep those

26 units in operation.

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1 (D) No later than 7 days after the effective date of

2 this amendatory Act of the 102nd General Assembly, the

3 Agency shall publish its proposed carbon mitigation credit

4 procurement plan. The Plan shall provide that winning bids

5 shall be selected by taking into consideration which

6 resources best match public interest criteria that

7 include, but are not limited to, minimizing carbon dioxide

8 emissions that result from electricity consumed in

9 Illinois and minimizing sulfur dioxide, nitrogen oxide,

10 and particulate matter emissions that adversely affect the

11 citizens of this State. The selection of winning bids

12 shall also take into account the incremental environmental

13 benefits resulting from the procurement or procurements,

14 such as any existing environmental benefits that are

15 preserved by a procurement held under this subsection

16 (d-10) and would cease to exist if the procurement were

17 not held, including the preservation of carbon-free energy

18 resources. For those bidders having the same public

19 interest criteria score, the relative ranking of such

20 bidders shall be determined by price. The Plan shall

21 describe in detail how each public interest factor shall

22 be considered and weighted in the bid selection process to

23 ensure that the public interest criteria are applied to

24 the procurement. The Plan shall, to the extent practical

25 and permissible by federal law, ensure that successful

26 bidders make commercially reasonable efforts to apply for

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1 federal tax credits, direct payments, or similar subsidy

2 programs that support carbon-free generation and for which

3 the successful bidder is eligible. Upon publishing of the

4 carbon mitigation credit procurement plan, copies of the

5 plan shall be posted and made publicly available on the

6 Agency's website. All interested parties shall have 7 days

7 following the date of posting to provide comment to the

8 Agency on the plan. All comments shall be posted to the

9 Agency's website. Following the end of the comment period,

10 but no more than 19 days later than the effective date of

11 this amendatory Act of the 102nd General Assembly, the

12 Agency shall revise the plan as necessary based on the

13 comments received and file its carbon mitigation credit

14 procurement plan with the Commission.

15 (E) If the Commission determines that the plan is

16 likely to result in the procurement of cost-effective

17 carbon mitigation credits, then the Commission shall,

18 after notice and hearing and opportunity for comment, but

19 no later than 42 days after the Agency filed the plan,

20 approve the plan or approve it with modification. For

21 purposes of this subsection (d-10), "cost-effective" means

22 carbon mitigation credits that are procured from

23 carbon-free energy resources at prices that are within the

24 limits specified in this paragraph (3). As part of the

25 Commission's review and acceptance or rejection of the

26 procurement results, the Commission shall, in its public

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1 notice of successful bidders:

2 (i) identify how the selected carbon-free energy

3 resources satisfy the public interest criteria

4 described in this paragraph (3) of minimizing carbon

5 dioxide emissions that result from electricity

6 consumed in Illinois and minimizing sulfur dioxide,

7 nitrogen oxide, and particulate matter emissions that

8 adversely affect the citizens of this State;

9 (ii) specifically address how the selection of

10 carbon-free energy resources takes into account the

11 incremental environmental benefits resulting from the

12 procurement, including any existing environmental

13 benefits that are preserved by the procurements held

14 under this amendatory Act of the 102nd General

15 Assembly and would have ceased to exist if the

16 procurements had not been held, such as the

17 preservation of carbon-free energy resources;

18 (iii) quantify the environmental benefit of

19 preserving the carbon-free energy resources procured

20 pursuant to this subsection (d-10), including the

21 following:

22 (I) an assessment value of avoided greenhouse

23 gas emissions measured as the product of the

24 carbon-free energy resources' output over the

25 contract term, using generally accepted

26 methodologies for the valuation of avoided

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1 emissions; and

2 (II) an assessment of costs of replacement

3 with other carbon-free energy resources and

4 renewable energy resources, including wind and

5 photovoltaic generation, based upon an assessment

6 of the prices paid for renewable energy credits

7 through programs and procurements conducted

8 pursuant to subsection (c) of Section 1-75 of this

9 Act, and the additional storage necessary to

10 produce the same or similar capability of matching

11 customer usage patterns.

12 (F) The procurements described in this paragraph (3),

13 including, but not limited to, the execution of all

14 contracts procured, shall be completed no later than

15 December 3, 2021. The procurement and plan approval

16 processes required by this paragraph (3) shall be

17 conducted in conjunction with the procurement and plan

18 approval processes required by Section 16-111.5 of the

19 Public Utilities Act, to the extent practicable. However,

20 the Agency and Commission may, as appropriate, modify the

21 various dates and timelines under this subparagraph and

22 subparagraphs (D) and (E) of this paragraph (3) to meet

23 the December 3, 2021 contract execution deadline.

24 Following the completion of such procurements, and

25 consistent with this paragraph (3), the Agency shall

26 calculate the payments to be made under each contract in a

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1 timely fashion.

2 (F-1) Costs incurred by the electric utility pursuant

3 to a contract authorized by this subsection (d-10) shall

4 be deemed prudently incurred and reasonable in amount, and

5 the electric utility shall be entitled to full cost

6 recovery pursuant to a tariff or tariffs filed with the

7 Commission.

8 (G) The counterparty electric utility shall retire all

9 carbon mitigation credits used to comply with the

10 requirements of this subsection (d-10).

11 (H) If a carbon-free energy resource is sold to

12 another owner, the rights, obligations, and commitments

13 under this subsection (d-10) shall continue to the

14 subsequent owner.

15 (I) This subsection (d-10) shall become inoperative on

16 January 1, 2028.

17 (e) The draft procurement plans are subject to public

18 comment, as required by Section 16-111.5 of the Public

19 Utilities Act.

20 (f) The Agency shall submit the final procurement plan to

21 the Commission. The Agency shall revise a procurement plan if

22 the Commission determines that it does not meet the standards

23 set forth in Section 16-111.5 of the Public Utilities Act.

24 (g) The Agency shall assess fees to each affected utility

25 to recover the costs incurred in preparation of the annual

26 procurement plan for the utility.

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1 (h) The Agency shall assess fees to each bidder to recover

2 the costs incurred in connection with a competitive

3 procurement process.

4 (i) A renewable energy credit, carbon emission credit,

5 zero emission credit, or carbon mitigation credit can only be

6 used once to comply with a single portfolio or other standard

7 as set forth in subsection (c), subsection (d), or subsection

8 (d-5) of this Section, respectively. A renewable energy

9 credit, carbon emission credit, zero emission credit, or

10 carbon mitigation credit cannot be used to satisfy the

11 requirements of more than one standard. If more than one type

12 of credit is issued for the same megawatt hour of energy, only

13 one credit can be used to satisfy the requirements of a single

14 standard. After such use, the credit must be retired together

15 with any other credits issued for the same megawatt hour of

16 energy.

17 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)

18 (20 ILCS 3855/1-129 new)

19 Sec. 1-129. Policy study.

20 (a) The General Assembly finds that:

21 (1) in 2021, Illinois became the first state in the

22 Midwest to mandate a clean energy future when it enacted

23 the Climate and Equitable Jobs Act (Public Act 102-662);

24 (2) through the Climate and Equitable Jobs Act,

25 Illinois established a plan to completely decarbonize its

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1 energy sector by 2050 in an equitable manner that invests

2 in the State's workforce;

3 (3) technology in the energy sector continues to

4 advance creating cleaner and more efficient options to

5 help the State attain the target of 50% renewable energy

6 by 2040; and

7 (4) while numerous legislative proposals purport to

8 help the State on its path to equitably attain 100% clean

9 energy, it is important to have a neutral party with

10 relevant expertise evaluate each proposal to ensure it is

11 consistent with the State's goals and maximizes benefits

12 to Illinois residents.

13 (b) The General Assembly intends:

14 (1) to prioritize the public interest over the profit

15 motives of utilities and private developers; and

16 (2) to invest in projects that reduce harmful

17 emissions and contribute to the clean economy.

18 (c) The Agency shall commission and publish a policy study

19 to evaluate the potential impacts of the proposals described

20 in subsection (g). The potential impacts may include, but are

21 not limited to, support for Illinois' decarbonization goals,

22 the environment, grid reliability, carbon and other pollutant

23 emissions, resource adequacy, long-term and short-term

24 electric rates, environmental justice communities, jobs, and

25 the economy. Where applicable, the study shall address the

26 impact of a proposal with respect to reports by the

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1 Midcontinent Independent System Operator, PJM, and North

2 American Electric Reliability Corporation staff that Illinois

3 has begun to experience resource adequacy issues.

4 (d) The Agency shall retain the services of technical and

5 policy experts with energy market and other relevant fields of

6 expertise. The technical and policy experts may include the

7 existing planning and procurement consultant and applicable

8 subcontractors and the procurement administrator and

9 applicable subcontractors. The Illinois Commerce Commission,

10 the Illinois Environmental Protection Agency, and the

11 Department of Commerce and Economic Opportunity shall provide

12 support to and consult with the Agency. The Agency may consult

13 with other State agencies, commissions, or task forces as

14 needed. The Agency may consult with and seek assistance from

15 the Regional Transmission Organizations PJM and MISO.

16 (e) The Agency may solicit information, including

17 confidential or proprietary information, from entities likely

18 to be impacted by the proposals described in subsection (g)

19 for purposes of this study. Any information designated as

20 confidential or proprietary information by the entity

21 providing the information shall be kept confidential by the

22 Agency, its consultants, and its contractors and is not

23 subject to disclosure under the Freedom of Information Act.

24 (f) The Agency shall publish a final policy study no later

25 than March 1, 2024 and suitable copies shall be delivered to

26 the Governor and members of the General Assembly. Prior to

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1 publishing the final policy study, the Agency shall publish a

2 preliminary draft of the policy study and provide for a 20-day

3 open public comment period. The Agency shall review public

4 comments and publish a final policy study no later than 20 days

5 after the public comment period ends. The policy study shall

6 include policy recommendations to the General Assembly.

7 (g) The policy study shall evaluate the following

8 proposals and may consider or suggest additional or

9 alternative items:

10 (1) House Bill 2132 of the 103rd General Assembly as

11 it passed out of the House on March 24, 2023 or a similar

12 pilot program to establish one new utility-scale offshore

13 wind project capable of producing at least 700,000

14 megawatt hours annually for at least 20 years in Lake

15 Michigan that includes an equity and inclusion plan to

16 create job opportunities for underrepresented populations

17 in addition to equity investment eligible communities and

18 a fully executed project labor agreement. The pilot

19 program may result in an increase in the amounts paid by

20 eligible retail customers in connection with electric

21 service that shall not exceed 0.25% of the amount paid per

22 kilowatt hour by those customers during the year ending

23 May 31, 2009.

24 (2) Senate Bill 1587 and amendments to Senate Bill

25 1587 of the 103rd General Assembly filed prior to May 31,

26 2023 or a similar proposal for the deployment of energy

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1 storage systems supported by the State through the

2 development of energy storage credit targets for the

3 Agency to procure on behalf of Illinois electric utilities

4 from privately owned, large scale energy storage providers

5 using energy storage contracts of at least 15 year

6 durations based on a competitive energy storage

7 procurement plan developed by the Agency designed to

8 enhance overall grid reliability, flexibility and

9 efficiency, and to lower electricity prices. The plan must

10 require participants to comply with the equity

11 accountability system requirements in subsection (c-10) of

12 Section 1-75 and to submit proof of project labor

13 agreements. For purposes of this policy study, it should

14 be assumed that the costs associated with procuring energy

15 storage credits shall be recovered through tariffed

16 charges assessed across all retail customers in a uniform

17 cents per kilowatt hour charge. In addition to large scale

18 energy storage, the proposal shall also include the

19 creation of distributed level energy storage programs

20 through utility tariffs as approved by the Illinois

21 Commerce Commission. The programs shall include a

22 residential and a commercial storage program that would

23 allow customer-sited batteries to provide grid benefits

24 and cost-savings to ratepayers. The proposal shall also

25 include a community solar energy storage program intended

26 to serve as a peak reduction program by utilizing

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1 community solar paired storage projects deployed daily in

2 summer months during peak hours. The installation of the

3 energy storage systems associated with these distributed

4 renewable systems must comply with the prevailing wage

5 requirements described in subparagraph (Q) of paragraph

6 (1) of subsection (c) of Section 1-75. The policy study

7 shall include a review of the ability of coal-fueled

8 generating plant sites located in Illinois that have been

9 closed since 2016 or are scheduled to be closed by 2030 to

10 support the installation of energy storage systems and

11 potential associated interconnection costs. This review

12 shall include: (i) whether those sites are already in a

13 regional transmission organization interconnection queue,

14 including MISO's replacement power interconnection queue,

15 or would be submitted to the replacement power

16 interconnection queue no later than September 1, 2023,

17 and, if a site is in a queue, the site's position in the

18 queue; and (ii) how soon those sites could support

19 development and installation of energy storage systems and

20 any barriers to that development. This review shall also

21 include consultation with electric generation facility

22 owners or operators and renewable developers that own or

23 are in the process of developing energy storage systems in

24 Illinois or that have experience developing energy storage

25 systems in other States.

26 (3) A policy establishing high voltage direct current

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1 renewable energy credits that requires the Agency to

2 procure contracts with at least 25 years but no more than

3 40 years duration for the delivery of renewable energy

4 credits on behalf of electric utilities in Illinois with

5 at least 300,000 customers from a high voltage direct

6 current transmission facility with more than 100 miles of

7 underground transmission lines in this State capable of

8 transmitting electricity at or above 525 kilovolts and

9 delivering power in the PJM market. High voltage direct

10 current renewable energy credits procured by the Agency

11 pursuant to this policy would not count toward the

12 renewable energy credit purchase targets in subsection (c)

13 of Section 1-75. The study shall also evaluate: (i) this

14 policy's potential for wholesale electricity price impacts

15 in both PJM and MISO, the net rate impact to Illinois

16 ratepayers, and the impact on grid reliability and

17 resilience; (ii) whether a 25-year to 40-year guaranteed

18 contract is necessary to build a high voltage direct

19 current transmission facility; (iii) whether specific high

20 voltage direct current transmission facility projects are

21 committed to Illinois' fair labor and equity standards;

22 and (iv) whether the policy creates incentives for

23 renewable development outside of Illinois rather than

24 within the State.

25 Section 15. The Illinois Procurement Code is amended by

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1 changing Section 1-10 as follows:

2 (30 ILCS 500/1-10)

3 Sec. 1-10. Application.

4 (a) This Code applies only to procurements for which

5 bidders, offerors, potential contractors, or contractors were

6 first solicited on or after July 1, 1998. This Code shall not

7 be construed to affect or impair any contract, or any

8 provision of a contract, entered into based on a solicitation

9 prior to the implementation date of this Code as described in

10 Article 99, including, but not limited to, any covenant

11 entered into with respect to any revenue bonds or similar

12 instruments. All procurements for which contracts are

13 solicited between the effective date of Articles 50 and 99 and

14 July 1, 1998 shall be substantially in accordance with this

15 Code and its intent.

16 (b) This Code shall apply regardless of the source of the

17 funds with which the contracts are paid, including federal

18 assistance moneys. This Code shall not apply to:

19 (1) Contracts between the State and its political

20 subdivisions or other governments, or between State

21 governmental bodies, except as specifically provided in

22 this Code.

23 (2) Grants, except for the filing requirements of

24 Section 20-80.

25 (3) Purchase of care, except as provided in Section

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1 5-30.6 of the Illinois Public Aid Code and this Section.

2 (4) Hiring of an individual as an employee and not as

3 an independent contractor, whether pursuant to an

4 employment code or policy or by contract directly with

5 that individual.

6 (5) Collective bargaining contracts.

7 (6) Purchase of real estate, except that notice of

8 this type of contract with a value of more than $25,000

9 must be published in the Procurement Bulletin within 10

10 calendar days after the deed is recorded in the county of

11 jurisdiction. The notice shall identify the real estate

12 purchased, the names of all parties to the contract, the

13 value of the contract, and the effective date of the

14 contract.

15 (7) Contracts necessary to prepare for anticipated

16 litigation, enforcement actions, or investigations,

17 provided that the chief legal counsel to the Governor

18 shall give his or her prior approval when the procuring

19 agency is one subject to the jurisdiction of the Governor,

20 and provided that the chief legal counsel of any other

21 procuring entity subject to this Code shall give his or

22 her prior approval when the procuring entity is not one

23 subject to the jurisdiction of the Governor.

24 (8) (Blank).

25 (9) Procurement expenditures by the Illinois

26 Conservation Foundation when only private funds are used.

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1 (10) (Blank).

2 (11) Public-private agreements entered into according

3 to the procurement requirements of Section 20 of the

4 Public-Private Partnerships for Transportation Act and

5 design-build agreements entered into according to the

6 procurement requirements of Section 25 of the

7 Public-Private Partnerships for Transportation Act.

8 (12) (A) Contracts for legal, financial, and other

9 professional and artistic services entered into by the

10 Illinois Finance Authority in which the State of Illinois

11 is not obligated. Such contracts shall be awarded through

12 a competitive process authorized by the members of the

13 Illinois Finance Authority and are subject to Sections

14 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,

15 as well as the final approval by the members of the

16 Illinois Finance Authority of the terms of the contract.

17 (B) Contracts for legal and financial services entered

18 into by the Illinois Housing Development Authority in

19 connection with the issuance of bonds in which the State

20 of Illinois is not obligated. Such contracts shall be

21 awarded through a competitive process authorized by the

22 members of the Illinois Housing Development Authority and

23 are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,

24 and 50-37 of this Code, as well as the final approval by

25 the members of the Illinois Housing Development Authority

26 of the terms of the contract.

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1 (13) Contracts for services, commodities, and

2 equipment to support the delivery of timely forensic

3 science services in consultation with and subject to the

4 approval of the Chief Procurement Officer as provided in

5 subsection (d) of Section 5-4-3a of the Unified Code of

6 Corrections, except for the requirements of Sections

7 20-60, 20-65, 20-70, and 20-160 and Article 50 of this

8 Code; however, the Chief Procurement Officer may, in

9 writing with justification, waive any certification

10 required under Article 50 of this Code. For any contracts

11 for services which are currently provided by members of a

12 collective bargaining agreement, the applicable terms of

13 the collective bargaining agreement concerning

14 subcontracting shall be followed.

15 On and after January 1, 2019, this paragraph (13),

16 except for this sentence, is inoperative.

17 (14) Contracts for participation expenditures required

18 by a domestic or international trade show or exhibition of

19 an exhibitor, member, or sponsor.

20 (15) Contracts with a railroad or utility that

21 requires the State to reimburse the railroad or utilities

22 for the relocation of utilities for construction or other

23 public purpose. Contracts included within this paragraph

24 (15) shall include, but not be limited to, those

25 associated with: relocations, crossings, installations,

26 and maintenance. For the purposes of this paragraph (15),

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1 "railroad" means any form of non-highway ground

2 transportation that runs on rails or electromagnetic

3 guideways and "utility" means: (1) public utilities as

4 defined in Section 3-105 of the Public Utilities Act, (2)

5 telecommunications carriers as defined in Section 13-202

6 of the Public Utilities Act, (3) electric cooperatives as

7 defined in Section 3.4 of the Electric Supplier Act, (4)

8 telephone or telecommunications cooperatives as defined in

9 Section 13-212 of the Public Utilities Act, (5) rural

10 water or waste water systems with 10,000 connections or

11 less, (6) a holder as defined in Section 21-201 of the

12 Public Utilities Act, and (7) municipalities owning or

13 operating utility systems consisting of public utilities

14 as that term is defined in Section 11-117-2 of the

15 Illinois Municipal Code.

16 (16) Procurement expenditures necessary for the

17 Department of Public Health to provide the delivery of

18 timely newborn screening services in accordance with the

19 Newborn Metabolic Screening Act.

20 (17) Procurement expenditures necessary for the

21 Department of Agriculture, the Department of Financial and

22 Professional Regulation, the Department of Human Services,

23 and the Department of Public Health to implement the

24 Compassionate Use of Medical Cannabis Program and Opioid

25 Alternative Pilot Program requirements and ensure access

26 to medical cannabis for patients with debilitating medical

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1 conditions in accordance with the Compassionate Use of

2 Medical Cannabis Program Act.

3 (18) This Code does not apply to any procurements

4 necessary for the Department of Agriculture, the

5 Department of Financial and Professional Regulation, the

6 Department of Human Services, the Department of Commerce

7 and Economic Opportunity, and the Department of Public

8 Health to implement the Cannabis Regulation and Tax Act if

9 the applicable agency has made a good faith determination

10 that it is necessary and appropriate for the expenditure

11 to fall within this exemption and if the process is

12 conducted in a manner substantially in accordance with the

13 requirements of Sections 20-160, 25-60, 30-22, 50-5,

14 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,

15 50-36, 50-37, 50-38, and 50-50 of this Code; however, for

16 Section 50-35, compliance applies only to contracts or

17 subcontracts over $100,000. Notice of each contract

18 entered into under this paragraph (18) that is related to

19 the procurement of goods and services identified in

20 paragraph (1) through (9) of this subsection shall be

21 published in the Procurement Bulletin within 14 calendar

22 days after contract execution. The Chief Procurement

23 Officer shall prescribe the form and content of the

24 notice. Each agency shall provide the Chief Procurement

25 Officer, on a monthly basis, in the form and content

26 prescribed by the Chief Procurement Officer, a report of

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1 contracts that are related to the procurement of goods and

2 services identified in this subsection. At a minimum, this

3 report shall include the name of the contractor, a

4 description of the supply or service provided, the total

5 amount of the contract, the term of the contract, and the

6 exception to this Code utilized. A copy of any or all of

7 these contracts shall be made available to the Chief

8 Procurement Officer immediately upon request. The Chief

9 Procurement Officer shall submit a report to the Governor

10 and General Assembly no later than November 1 of each year

11 that includes, at a minimum, an annual summary of the

12 monthly information reported to the Chief Procurement

13 Officer. This exemption becomes inoperative 5 years after

14 June 25, 2019 (the effective date of Public Act 101-27).

15 (19) Acquisition of modifications or adjustments,

16 limited to assistive technology devices and assistive

17 technology services, adaptive equipment, repairs, and

18 replacement parts to provide reasonable accommodations (i)

19 that enable a qualified applicant with a disability to

20 complete the job application process and be considered for

21 the position such qualified applicant desires, (ii) that

22 modify or adjust the work environment to enable a

23 qualified current employee with a disability to perform

24 the essential functions of the position held by that

25 employee, (iii) to enable a qualified current employee

26 with a disability to enjoy equal benefits and privileges

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1 of employment as are enjoyed by other similarly situated

2 employees without disabilities, and (iv) that allow a

3 customer, client, claimant, or member of the public

4 seeking State services full use and enjoyment of and

5 access to its programs, services, or benefits.

6 For purposes of this paragraph (19):

7 "Assistive technology devices" means any item, piece

8 of equipment, or product system, whether acquired

9 commercially off the shelf, modified, or customized, that

10 is used to increase, maintain, or improve functional

11 capabilities of individuals with disabilities.

12 "Assistive technology services" means any service that

13 directly assists an individual with a disability in

14 selection, acquisition, or use of an assistive technology

15 device.

16 "Qualified" has the same meaning and use as provided

17 under the federal Americans with Disabilities Act when

18 describing an individual with a disability.

19 (20) Procurement expenditures necessary for the

20 Illinois Commerce Commission to hire third-party

21 facilitators pursuant to Sections 16-105.17 and 16-108.18

22 of the Public Utilities Act or an ombudsman pursuant to

23 Section 16-107.5 of the Public Utilities Act, a

24 facilitator pursuant to Section 16-105.17 of the Public

25 Utilities Act, or a grid auditor pursuant to Section

26 16-105.10 of the Public Utilities Act.

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1 (21) Procurement expenditures for the purchase,

2 renewal, and expansion of software, software licenses, or

3 software maintenance agreements that support the efforts

4 of the Illinois State Police to enforce, regulate, and

5 administer the Firearm Owners Identification Card Act, the

6 Firearm Concealed Carry Act, the Firearms Restraining

7 Order Act, the Firearm Dealer License Certification Act,

8 the Law Enforcement Agencies Data System (LEADS), the

9 Uniform Crime Reporting Act, the Criminal Identification

10 Act, the Illinois Uniform Conviction Information Act, and

11 the Gun Trafficking Information Act, or establish or

12 maintain record management systems necessary to conduct

13 human trafficking investigations or gun trafficking or

14 other stolen firearm investigations. This paragraph (21)

15 applies to contracts entered into on or after January 10,

16 2023 (the effective date of Public Act 102-1116) ~~this~~

17 ~~amendatory Act of the 102nd General Assembly~~ and the

18 renewal of contracts that are in effect on January 10,

19 2023 (the effective date of Public Act 102-1116) ~~this~~

20 ~~amendatory Act of the 102nd General Assembly~~.

21 (22) Contracts for project management services and

22 system integration services required for the completion of

23 the State's enterprise resource planning project. This

24 exemption becomes inoperative 5 years after June 7, 2023

25 (the effective date of the changes made to this Section by

26 Public Act 103-8) ~~this amendatory Act of the 103rd General~~

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1 ~~Assembly~~. This paragraph (22) applies to contracts entered

2 into on or after June 7, 2023 (the effective date of the

3 changes made to this Section by Public Act 103-8) ~~this~~

4 ~~amendatory Act of the 103rd General Assembly~~ and the

5 renewal of contracts that are in effect on June 7, 2023

6 (the effective date of the changes made to this Section by

7 Public Act 103-8) ~~this amendatory Act of the 103rd General~~

8 ~~Assembly~~.

9 (23) ~~(22)~~ Procurements necessary for the Department of

10 Insurance to implement the Illinois Health Benefits

11 Exchange Law if the Department of Insurance has made a

12 good faith determination that it is necessary and

13 appropriate for the expenditure to fall within this

14 exemption. The procurement process shall be conducted in a

15 manner substantially in accordance with the requirements

16 of Sections 20-160 and 25-60 and Article 50 of this Code. A

17 copy of these contracts shall be made available to the

18 Chief Procurement Officer immediately upon request. This

19 paragraph is inoperative 5 years after June 27, 2023 (the

20 effective date of Public Act 103-103) ~~this amendatory Act~~

21 ~~of the 103rd General Assembly~~.

22 Notwithstanding any other provision of law, for contracts

23 with an annual value of more than $100,000 entered into on or

24 after October 1, 2017 under an exemption provided in any

25 paragraph of this subsection (b), except paragraph (1), (2),

26 or (5), each State agency shall post to the appropriate

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1 procurement bulletin the name of the contractor, a description

2 of the supply or service provided, the total amount of the

3 contract, the term of the contract, and the exception to the

4 Code utilized. The chief procurement officer shall submit a

5 report to the Governor and General Assembly no later than

6 November 1 of each year that shall include, at a minimum, an

7 annual summary of the monthly information reported to the

8 chief procurement officer.

9 (c) This Code does not apply to the electric power

10 procurement process provided for under Section 1-75 of the

11 Illinois Power Agency Act and Section 16-111.5 of the Public

12 Utilities Act. This Code does not apply to the procurement of

13 technical and policy experts pursuant to Section 1-129 of the

14 Illinois Power Agency Act.

15 (d) Except for Section 20-160 and Article 50 of this Code,

16 and as expressly required by Section 9.1 of the Illinois

17 Lottery Law, the provisions of this Code do not apply to the

18 procurement process provided for under Section 9.1 of the

19 Illinois Lottery Law.

20 (e) This Code does not apply to the process used by the

21 Capital Development Board to retain a person or entity to

22 assist the Capital Development Board with its duties related

23 to the determination of costs of a clean coal SNG brownfield

24 facility, as defined by Section 1-10 of the Illinois Power

25 Agency Act, as required in subsection (h-3) of Section 9-220

26 of the Public Utilities Act, including calculating the range

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1 of capital costs, the range of operating and maintenance

2 costs, or the sequestration costs or monitoring the

3 construction of clean coal SNG brownfield facility for the

4 full duration of construction.

5 (f) (Blank).

6 (g) (Blank).

7 (h) This Code does not apply to the process to procure or

8 contracts entered into in accordance with Sections 11-5.2 and

9 11-5.3 of the Illinois Public Aid Code.

10 (i) Each chief procurement officer may access records

11 necessary to review whether a contract, purchase, or other

12 expenditure is or is not subject to the provisions of this

13 Code, unless such records would be subject to attorney-client

14 privilege.

15 (j) This Code does not apply to the process used by the

16 Capital Development Board to retain an artist or work or works

17 of art as required in Section 14 of the Capital Development

18 Board Act.

19 (k) This Code does not apply to the process to procure

20 contracts, or contracts entered into, by the State Board of

21 Elections or the State Electoral Board for hearing officers

22 appointed pursuant to the Election Code.

23 (l) This Code does not apply to the processes used by the

24 Illinois Student Assistance Commission to procure supplies and

25 services paid for from the private funds of the Illinois

26 Prepaid Tuition Fund. As used in this subsection (l), "private

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1 funds" means funds derived from deposits paid into the

2 Illinois Prepaid Tuition Trust Fund and the earnings thereon.

3 (m) This Code shall apply regardless of the source of

4 funds with which contracts are paid, including federal

5 assistance moneys. Except as specifically provided in this

6 Code, this Code shall not apply to procurement expenditures

7 necessary for the Department of Public Health to conduct the

8 Healthy Illinois Survey in accordance with Section 2310-431 of

9 the Department of Public Health Powers and Duties Law of the

10 Civil Administrative Code of Illinois.

11 (Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;

12 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.

13 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;

14 102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.

15 6-27-23; revised 9-5-23.)

16 Section 20. The Counties Code is amended by changing

17 Section 5-12020 as follows:

18 (55 ILCS 5/5-12020)

19 Sec. 5-12020. Commercial wind energy facilities and

20 commercial solar energy facilities.

21 (a) As used in this Section:

22 "Commercial solar energy facility" means a "commercial

23 solar energy system" as defined in Section 10-720 of the

24 Property Tax Code. "Commercial solar energy facility" does not

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1 mean a utility-scale solar energy facility being constructed

2 at a site that was eligible to participate in a procurement

3 event conducted by the Illinois Power Agency pursuant to

4 subsection (c-5) of Section 1-75 of the Illinois Power Agency

5 Act.

6 "Commercial wind energy facility" means a wind energy

7 conversion facility of equal or greater than 500 kilowatts in

8 total nameplate generating capacity. "Commercial wind energy

9 facility" includes a wind energy conversion facility seeking

10 an extension of a permit to construct granted by a county or

11 municipality before January 27, 2023 (the effective date of

12 Public Act 102-1123) ~~this amendatory Act of the 102nd General~~

13 ~~Assembly~~.

14 "Facility owner" means (i) a person with a direct

15 ownership interest in a commercial wind energy facility or a

16 commercial solar energy facility, or both, regardless of

17 whether the person is involved in acquiring the necessary

18 rights, permits, and approvals or otherwise planning for the

19 construction and operation of the facility, and (ii) at the

20 time the facility is being developed, a person who is acting as

21 a developer of the facility by acquiring the necessary rights,

22 permits, and approvals or by planning for the construction and

23 operation of the facility, regardless of whether the person

24 will own or operate the facility.

25 "Nonparticipating property" means real property that is

26 not a participating property.

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1 "Nonparticipating residence" means a residence that is

2 located on nonparticipating property and that is existing and

3 occupied on the date that an application for a permit to

4 develop the commercial wind energy facility or the commercial

5 solar energy facility is filed with the county.

6 "Occupied community building" means any one or more of the

7 following buildings that is existing and occupied on the date

8 that the application for a permit to develop the commercial

9 wind energy facility or the commercial solar energy facility

10 is filed with the county: a school, place of worship, day care

11 facility, public library, or community center.

12 "Participating property" means real property that is the

13 subject of a written agreement between a facility owner and

14 the owner of the real property that provides the facility

15 owner an easement, option, lease, or license to use the real

16 property for the purpose of constructing a commercial wind

17 energy facility, a commercial solar energy facility, or

18 supporting facilities. "Participating property" also includes

19 real property that is owned by a facility owner for the purpose

20 of constructing a commercial wind energy facility, a

21 commercial solar energy facility, or supporting facilities.

22 "Participating residence" means a residence that is

23 located on participating property and that is existing and

24 occupied on the date that an application for a permit to

25 develop the commercial wind energy facility or the commercial

26 solar energy facility is filed with the county.

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1 "Protected lands" means real property that is:

2 (1) subject to a permanent conservation right

3 consistent with the Real Property Conservation Rights Act;

4 or

5 (2) registered or designated as a nature preserve,

6 buffer, or land and water reserve under the Illinois

7 Natural Areas Preservation Act.

8 "Supporting facilities" means the transmission lines,

9 substations, access roads, meteorological towers, storage

10 containers, and equipment associated with the generation and

11 storage of electricity by the commercial wind energy facility

12 or commercial solar energy facility.

13 "Wind tower" includes the wind turbine tower, nacelle, and

14 blades.

15 (b) Notwithstanding any other provision of law or whether

16 the county has formed a zoning commission and adopted formal

17 zoning under Section 5-12007, a county may establish standards

18 for commercial wind energy facilities, commercial solar energy

19 facilities, or both. The standards may include all of the

20 requirements specified in this Section but may not include

21 requirements for commercial wind energy facilities or

22 commercial solar energy facilities that are more restrictive

23 than specified in this Section. A county may also regulate the

24 siting of commercial wind energy facilities with standards

25 that are not more restrictive than the requirements specified

26 in this Section in unincorporated areas of the county that are

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1 outside the zoning jurisdiction of a municipality and that are

2 outside the 1.5-mile radius surrounding the zoning

3 jurisdiction of a municipality.

4 (c) If a county has elected to establish standards under

5 subsection (b), before the county grants siting approval or a

6 special use permit for a commercial wind energy facility or a

7 commercial solar energy facility, or modification of an

8 approved siting or special use permit, the county board of the

9 county in which the facility is to be sited or the zoning board

10 of appeals for the county shall hold at least one public

11 hearing. The public hearing shall be conducted in accordance

12 with the Open Meetings Act and shall be held not more than 60

13 ~~45~~ days after the filing of the application for the facility.

14 The county shall allow interested parties to a special use

15 permit an opportunity to present evidence and to cross-examine

16 witnesses at the hearing, but the county may impose reasonable

17 restrictions on the public hearing, including reasonable time

18 limitations on the presentation of evidence and the

19 cross-examination of witnesses. The county shall also allow

20 public comment at the public hearing in accordance with the

21 Open Meetings Act. The county shall make its siting and

22 permitting decisions not more than 30 days after the

23 conclusion of the public hearing. Notice of the hearing shall

24 be published in a newspaper of general circulation in the

25 county. A facility owner must enter into an agricultural

26 impact mitigation agreement with the Department of Agriculture

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1 prior to the date of the required public hearing. A commercial

2 wind energy facility owner seeking an extension of a permit

3 granted by a county prior to July 24, 2015 (the effective date

4 of Public Act 99-132) must enter into an agricultural impact

5 mitigation agreement with the Department of Agriculture prior

6 to a decision by the county to grant the permit extension.

7 Counties may allow test wind towers or test solar energy

8 systems to be sited without formal approval by the county

9 board.

10 (d) A county with an existing zoning ordinance in conflict

11 with this Section shall amend that zoning ordinance to be in

12 compliance with this Section within 120 days after January 27,

13 2023 (the effective date of Public Act 102-1123) ~~this~~

14 ~~amendatory Act of the 102nd General Assembly~~.

15 (e) A county may require:

16 (1) a wind tower of a commercial wind energy facility

17 to be sited as follows, with setback distances measured

18 from the center of the base of the wind tower:

19 Setback Description Setback Distance

20 Occupied Community 2.1 times the maximum blade tip

21 Buildings height of the wind tower to the

22 nearest point on the outside

23 wall of the structure

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1 Participating Residences 1.1 times the maximum blade tip

2 height of the wind tower to the

3 nearest point on the outside

4 wall of the structure

5 Nonparticipating Residences 2.1 times the maximum blade tip

6 height of the wind tower to the

7 nearest point on the outside

8 wall of the structure

9 Boundary Lines of None

10 Participating Property

11 Boundary Lines of 1.1 times the maximum blade tip

12 Nonparticipating Property height of the wind tower to the

13 nearest point on the property

14 line of the nonparticipating

15 property

16 Public Road Rights-of-Way 1.1 times the maximum blade tip

17 height of the wind tower

18 to the center point of the

19 public road right-of-way

20 Overhead Communication and 1.1 times the maximum blade tip

21 Electric Transmission height of the wind tower to the

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1 and Distribution Facilities nearest edge of the property

2 (Not Including Overhead line, easement, or

3 Utility Service Lines to right-of-way ~~right of way~~

4 Individual Houses or containing the overhead line

5 Outbuildings)

6 Overhead Utility Service None

7 Lines to Individual

8 Houses or Outbuildings

9 Fish and Wildlife Areas 2.1 times the maximum blade

10 and Illinois Nature tip height of the wind tower

11 Preserve Commission to the nearest point on the

12 Protected Lands property line of the fish and

13 wildlife area or protected

14 land

15 This Section does not exempt or excuse compliance with

16 electric facility clearances approved or required by the

17 National Electrical Code, The National Electrical Safety

18 Code, Illinois Commerce Commission, Federal Energy

19 Regulatory Commission, and their designees or successors.

20 (2) a wind tower of a commercial wind energy facility

21 to be sited so that industry standard computer modeling

22 indicates that any occupied community building or

23 nonparticipating residence will not experience more than

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1 30 hours per year of shadow flicker under planned

2 operating conditions;

3 (3) a commercial solar energy facility to be sited as

4 follows, with setback distances measured from the nearest

5 edge of any component of the facility:

6 Setback Description Setback Distance

7 Occupied Community 150 feet from the nearest

8 Buildings and Dwellings on point on the outside wall

9 Nonparticipating Properties of the structure

10 Boundary Lines of None

11 Participating Property

12 Public Road Rights-of-Way 50 feet from the nearest

13 edge

14 Boundary Lines of 50 feet to the nearest

15 Nonparticipating Property point on the property

16 line of the nonparticipating

17 property

18 (4) a commercial solar energy facility to be sited so

19 that the facility's perimeter is enclosed by fencing

20 having a height of at least 6 feet and no more than 25

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1 feet; and

2 (5) a commercial solar energy facility to be sited so

3 that no component of a solar panel has a height of more

4 than 20 feet above ground when the solar energy facility's

5 arrays are at full tilt.

6 The requirements set forth in this subsection (e) may be

7 waived subject to the written consent of the owner of each

8 affected nonparticipating property.

9 (f) A county may not set a sound limitation for wind towers

10 in commercial wind energy facilities or any components in

11 commercial solar energy facilities ~~facility~~ that is more

12 restrictive than the sound limitations established by the

13 Illinois Pollution Control Board under 35 Ill. Adm. Code Parts

14 900, 901, and 910.

15 (g) A county may not place any restriction on the

16 installation or use of a commercial wind energy facility or a

17 commercial solar energy facility unless it adopts an ordinance

18 that complies with this Section. A county may not establish

19 siting standards for supporting facilities that preclude

20 development of commercial wind energy facilities or commercial

21 solar energy facilities.

22 A request for siting approval or a special use permit for a

23 commercial wind energy facility or a commercial solar energy

24 facility, or modification of an approved siting or special use

25 permit, shall be approved if the request is in compliance with

26 the standards and conditions imposed in this Act, the zoning

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1 ordinance adopted consistent with this Code, and the

2 conditions imposed under State and federal statutes and

3 regulations.

4 (h) A county may not adopt zoning regulations that

5 disallow, permanently or temporarily, commercial wind energy

6 facilities or commercial solar energy facilities from being

7 developed or operated in any district zoned to allow

8 agricultural or industrial uses.

9 (i) A county may not require permit application fees for a

10 commercial wind energy facility or commercial solar energy

11 facility that are unreasonable. All application fees imposed

12 by the county shall be consistent with fees for projects in the

13 county with similar capital value and cost.

14 (j) Except as otherwise provided in this Section, a county

15 shall not require standards for construction, decommissioning,

16 or deconstruction of a commercial wind energy facility or

17 commercial solar energy facility or related financial

18 assurances that are more restrictive than those included in

19 the Department of Agriculture's standard wind farm

20 agricultural impact mitigation agreement, template 81818, or

21 standard solar agricultural impact mitigation agreement,

22 version 8.19.19, as applicable and in effect on December 31,

23 2022. The amount of any decommissioning payment shall be in

24 accordance with the financial assurance ~~limited to the cost~~

25 ~~identified in the decommissioning or deconstruction plan, as~~

26 required by those agricultural impact mitigation agreements~~,~~

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1 ~~minus the salvage value of the project~~.

2 (j-5) A commercial wind energy facility or a commercial

3 solar energy facility shall file a farmland drainage plan with

4 the county and impacted drainage districts outlining how

5 surface and subsurface drainage of farmland will be restored

6 during and following construction or deconstruction of the

7 facility. The plan is to be created independently by the

8 facility developer and shall include the location of any

9 potentially impacted drainage district facilities to the

10 extent this information is publicly available from the county

11 or the drainage district, plans to repair any subsurface

12 drainage affected during construction or deconstruction using

13 procedures outlined in the agricultural impact mitigation

14 agreement entered into by the commercial wind energy facility

15 owner or commercial solar energy facility owner, and

16 procedures for the repair and restoration of surface drainage

17 affected during construction or deconstruction. All surface

18 and subsurface damage shall be repaired as soon as reasonably

19 practicable.

20 (k) A county may not condition approval of a commercial

21 wind energy facility or commercial solar energy facility on a

22 property value guarantee and may not require a facility owner

23 to pay into a neighboring property devaluation escrow account.

24 (l) A county may require certain vegetative screening

25 surrounding a commercial wind energy facility or commercial

26 solar energy facility but may not require earthen berms or

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1 similar structures.

2 (m) A county may set blade tip height limitations for wind

3 towers in commercial wind energy facilities but may not set a

4 blade tip height limitation that is more restrictive than the

5 height allowed under a Determination of No Hazard to Air

6 Navigation by the Federal Aviation Administration under 14 CFR

7 Part 77.

8 (n) A county may require that a commercial wind energy

9 facility owner or commercial solar energy facility owner

10 provide:

11 (1) the results and recommendations from consultation

12 with the Illinois Department of Natural Resources that are

13 obtained through the Ecological Compliance Assessment Tool

14 (EcoCAT) or a comparable successor tool; and

15 (2) the results of the United States Fish and Wildlife

16 Service's Information for Planning and Consulting

17 environmental review or a comparable successor tool that

18 is consistent with (i) the "U.S. Fish and Wildlife

19 Service's Land-Based Wind Energy Guidelines" and (ii) any

20 applicable United States Fish and Wildlife Service solar

21 wildlife guidelines that have been subject to public

22 review.

23 (o) A county may require a commercial wind energy facility

24 or commercial solar energy facility to adhere to the

25 recommendations provided by the Illinois Department of Natural

26 Resources in an EcoCAT natural resource review report under 17

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1 Ill. Adm. ~~Admin.~~ Code Part 1075.

2 (p) A county may require a facility owner to:

3 (1) demonstrate avoidance of protected lands as

4 identified by the Illinois Department of Natural Resources

5 and the Illinois Nature Preserve Commission; or

6 (2) consider the recommendations of the Illinois

7 Department of Natural Resources for setbacks from

8 protected lands, including areas identified by the

9 Illinois Nature Preserve Commission.

10 (q) A county may require that a facility owner provide

11 evidence of consultation with the Illinois State Historic

12 Preservation Office to assess potential impacts on

13 State-registered historic sites under the Illinois State

14 Agency Historic Resources Preservation Act.

15 (r) To maximize community benefits, including, but not

16 limited to, reduced stormwater runoff, flooding, and erosion

17 at the ground mounted solar energy system, improved soil

18 health, and increased foraging habitat for game birds,

19 songbirds, and pollinators, a county may (1) require a

20 commercial solar energy facility owner to plant, establish,

21 and maintain for the life of the facility vegetative ground

22 cover, consistent with the goals of the Pollinator-Friendly

23 Solar Site Act and (2) require the submittal of a vegetation

24 management plan that is in compliance with the agricultural

25 impact mitigation agreement in the application to construct

26 and operate a commercial solar energy facility in the county

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1 if the vegetative ground cover and vegetation management plan

2 comply with the requirements of the underlying agreement with

3 the landowner or landowners where the facility will be

4 constructed.

5 No later than 90 days after January 27, 2023 (the

6 effective date of Public Act 102-1123) ~~this amendatory Act of~~

7 ~~the 102nd General Assembly~~, the Illinois Department of Natural

8 Resources shall develop guidelines for vegetation management

9 plans that may be required under this subsection for

10 commercial solar energy facilities. The guidelines must

11 include guidance for short-term and long-term property

12 management practices that provide and maintain native and

13 non-invasive naturalized perennial vegetation to protect the

14 health and well-being of pollinators.

15 (s) If a facility owner enters into a road use agreement

16 with the Illinois Department of Transportation, a road

17 district, or other unit of local government relating to a

18 commercial wind energy facility or a commercial solar energy

19 facility, the road use agreement shall require the facility

20 owner to be responsible for (i) the reasonable cost of

21 improving roads used by the facility owner to construct the

22 commercial wind energy facility or the commercial solar energy

23 facility and (ii) the reasonable cost of repairing roads used

24 by the facility owner during construction of the commercial

25 wind energy facility or the commercial solar energy facility

26 so that those roads are in a condition that is safe for the

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1 driving public after the completion of the facility's

2 construction. Roadways improved in preparation for and during

3 the construction of the commercial wind energy facility or

4 commercial solar energy facility shall be repaired and

5 restored to the improved condition at the reasonable cost of

6 the developer if the roadways have degraded or were damaged as

7 a result of construction-related activities.

8 The road use agreement shall not require the facility

9 owner to pay costs, fees, or charges for road work that is not

10 specifically and uniquely attributable to the construction of

11 the commercial wind energy facility or the commercial solar

12 energy facility. Road-related fees, permit fees, or other

13 charges imposed by the Illinois Department of Transportation,

14 a road district, or other unit of local government under a road

15 use agreement with the facility owner shall be reasonably

16 related to the cost of administration of the road use

17 agreement.

18 (s-5) The facility owner shall also compensate landowners

19 for crop losses or other agricultural damages resulting from

20 damage to the drainage system caused by the construction of

21 the commercial wind energy facility or the commercial solar

22 energy facility. The commercial wind energy facility owner or

23 commercial solar energy facility owner shall repair or pay for

24 the repair of all damage to the subsurface drainage system

25 caused by the construction of the commercial wind energy

26 facility or the commercial solar energy facility in accordance

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1 with the agriculture impact mitigation agreement requirements

2 for repair of drainage. The commercial wind energy facility

3 owner or commercial solar energy facility owner shall repair

4 or pay for the repair and restoration of surface drainage

5 caused by the construction or deconstruction of the commercial

6 wind energy facility or the commercial solar energy facility

7 as soon as reasonably practicable.

8 (t) Notwithstanding any other provision of law, a facility

9 owner with siting approval from a county to construct a

10 commercial wind energy facility or a commercial solar energy

11 facility is authorized to cross or impact a drainage system,

12 including, but not limited to, drainage tiles, open drainage

13 ditches ~~districts~~, culverts, and water gathering vaults, owned

14 or under the control of a drainage district under the Illinois

15 Drainage Code without obtaining prior agreement or approval

16 from the drainage district in accordance with the farmland

17 drainage plan required by subsection (j-5) ~~, except that the~~

18 ~~facility owner shall repair or pay for the repair of all damage~~

19 ~~to the drainage system caused by the construction of the~~

20 ~~commercial wind energy facility or the commercial solar energy~~

21 ~~facility within a reasonable time after construction of the~~

22 ~~commercial wind energy facility or the commercial solar energy~~

23 ~~facility is complete~~.

24 (u) The amendments to this Section adopted in Public Act

25 102-1123 do not apply to: (1) an application for siting

26 approval or for a special use permit for a commercial wind

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1 energy facility or commercial solar energy facility if the

2 application was submitted to a unit of local government before

3 January 27, 2023 (the effective date of Public Act 102-1123)

4 ~~this amendatory Act of the 102nd General Assembly~~; (2) a

5 commercial wind energy facility or a commercial solar energy

6 facility if the facility owner has submitted an agricultural

7 impact mitigation agreement to the Department of Agriculture

8 before January 27, 2023 (the effective date of Public Act

9 102-1123) ~~this amendatory Act of the 102nd General Assembly~~;

10 or (3) a commercial wind energy or commercial solar energy

11 development on property that is located within an enterprise

12 zone certified under the Illinois Enterprise Zone Act, that

13 was classified as industrial by the appropriate zoning

14 authority on or before January 27, 2023, and that is located

15 within 4 miles of the intersection of Interstate 88 and

16 Interstate 39.

17 (Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;

18 revised 9-25-23.)

19 Section 25. The Public Utilities Act is amended by adding

20 Section 4-610 as follows:

21 (220 ILCS 5/4-610 new)

22 Sec. 4-610. Thermal energy networks.

23 (a) The General Assembly finds that:

24 (1) the State has an interest in decarbonizing

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1 buildings in a manner that is affordable and accessible,

2 preserves and creates living-wage jobs, and retains the

3 knowledge and experience of the existing utility

4 workforce;

5 (2) thermal energy networks have the potential to

6 affordably decarbonize buildings at the community-scale

7 and utility-scale and help achieve the goals of the

8 Climate and Equitable Jobs Act (Public Act 102-662);

9 (3) the construction industry is highly skilled and

10 labor intensive, and the installation of modern thermal

11 energy networks involves particularly complex work,

12 therefore effective qualification standards for craft

13 labor personnel employed on these projects are critically

14 needed to promote successful project delivery; and

15 (4) it is the intent of the General Assembly to

16 establish a stakeholder workshop within the Commission to

17 promote the successful planning and delivery of thermal

18 energy networks in an equitable manner that reduces

19 emissions, offers affordable building decarbonization, and

20 provides opportunities for employment with fair labor

21 standards and preapprenticeship and apprenticeship

22 programs.

23 (b) As used in this Section:

24 "Thermal energy" means piped noncombustible fluids used

25 for transferring heat into and out of buildings for the

26 purpose of reducing any resultant onsite greenhouse gas

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1 emissions of all types of heating and cooling processes,

2 including, but not limited to, comfort heating and cooling,

3 domestic hot water, and refrigeration.

4 "Thermal energy network" means all real estate, fixtures,

5 and personal property operated, owned, used, or to be used

6 for, in connection with, or to facilitate a utility-scale

7 distribution infrastructure project that supplies thermal

8 energy.

9 (c) The Commission, in order to develop a regulatory

10 structure for utility thermal energy networks that scale with

11 affordable and accessible building electrification, protect

12 utility customers, and promote the successful planning and

13 delivery of thermal energy networks, shall convene a workshop

14 process for the purpose of establishing an open, inclusive,

15 and cooperative forum regarding such thermal energy networks.

16 The workshops may be facilitated by an independent,

17 third-party facilitator selected by the Commission. The series

18 of workshops shall include no fewer than 3 workshops. After

19 the conclusion of the workshops, the Commission shall open a

20 comment period that allows interested and diverse stakeholders

21 to submit comments and recommendations regarding the thermal

22 energy networks. Based on the workshop process and stakeholder

23 comments and recommendations offered verbally or in writing

24 during the workshops and in writing during the comment period

25 following the workshops, the Commission or, if applicable, the

26 independent third-party facilitator, shall prepare a report,

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1 to be submitted to the Governor and the General Assembly no

2 later than March 1, 2024, describing the stakeholders,

3 discussions, proposals, and areas of consensus and

4 disagreement from the workshop process, and making

5 recommendations regarding thermal energy networks.

6 (d) The workshop shall be designed to achieve the

7 following objectives:

8 (1) determine appropriate ownership, market, and rate

9 structures for thermal energy networks and whether the

10 provision of thermal energy services by thermal network

11 energy providers is in the public interest;

12 (2) consider project designs that could maximize the

13 value of existing State energy efficiency and

14 weatherization programs and maximize federal funding

15 opportunities to the extent practicable;

16 (3) determine whether thermal energy network projects

17 further climate justice and emissions reductions and

18 benefits to utility customers and society at large,

19 including but not limited to public health benefits in

20 areas with disproportionate environmental burdens, job

21 retention and creation, reliability, and increased

22 affordability of renewable thermal energy options;

23 (4) consider approaches to thermal energy network

24 projects that advance financial and technical approaches

25 to equitable and affordable building electrification,

26 including access to thermal energy network benefits by low

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1 and moderate income households; and

2 (5) consider approaches to promote the training and

3 transition of utility workers to work on thermal energy

4 networks.

5 Section 95. No acceleration or delay. Where this Act makes

6 changes in a statute that is represented in this Act by text

7 that is not yet or no longer in effect (for example, a Section

8 represented by multiple versions), the use of that text does

9 not accelerate or delay the taking effect of (i) the changes

10 made by this Act or (ii) provisions derived from any other

11 Public Act.